As of May 25, 2025, Corning Inc's estimated intrinsic value ranges from $7.42 to $68.06 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $68.06 | +40.7% |
| Discounted Cash Flow (5Y) | $46.58 | -3.7% |
| Dividend Discount Model (Multi-Stage) | $49.86 | +3.1% |
| Dividend Discount Model (Stable) | $9.57 | -80.2% |
| Earnings Power Value | $7.42 | -84.7% |
Is Corning Inc (GLW) undervalued or overvalued?
With the current market price at $48.36, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Corning Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1 | 1.22 |
| Cost of equity | 8.4% | 11.7% |
| Cost of debt | 4.0% | 5.6% |
| Tax rate | 20.5% | 21.5% |
| Debt/Equity ratio | 0.18 | 0.18 |
| After-tax WACC | 7.6% | 10.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $47 | $43,608M | 82.0% |
| 10-Year Growth | $68 | $61,008M | 68.2% |
| 5-Year EBITDA | $53 | $48,788M | 83.9% |
| 10-Year EBITDA | $71 | $63,405M | 69.4% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,053M |
| Discount Rate (WACC) | 10.5% - 7.6% |
| Enterprise Value | $9,983M - $13,798M |
| Net Debt | $5,878M |
| Equity Value | $4,105M - $7,920M |
| Outstanding Shares | 810M |
| Fair Value | $5 - $10 |
| Selected Fair Value | $7.42 |
| Metric | Value |
|---|---|
| Market Capitalization | $39172M |
| Enterprise Value | $45050M |
| Trailing P/E | 86.28 |
| Forward P/E | 32.75 |
| Trailing EV/EBITDA | 11.00 |
| Current Dividend Yield | 251.46% |
| Dividend Growth Rate (5Y) | 5.80% |
| Debt-to-Equity Ratio | 0.18 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $20.42 |
| Discounted Cash Flow (5Y) | 25% | $11.65 |
| Dividend Discount Model (Multi-Stage) | 20% | $9.97 |
| Dividend Discount Model (Stable) | 15% | $1.44 |
| Earnings Power Value | 10% | $0.74 |
| Weighted Average | 100% | $44.21 |
Based on our comprehensive valuation analysis, Corning Inc's weighted average intrinsic value is $44.21, which is approximately 8.6% below the current market price of $48.36.
Key investment considerations:
Given these factors, we believe Corning Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.