Armstrong World Industries, Inc. (AWI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-12.3%

$149.74

vs $170.79 price

Levered DCF

$89.89

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

6.98

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.99×	23.32×	19.66×	15.91×	30.24×	-42.27×	19.06×	16.08×
P/B	9.25×	8.16×	7.43×	5.94×	10.64×	7.9×	12.54×	11.43×
P/S	5.14×	4.27×	3.39×	2.58×	4.99×	3.8×	4.41×	3.06×
EV / EBITDA	15.8×	17.3×	11.43×	10.2×	16.46×	-321.7×	12.67×	10.07×
Gross margin	40.6%	40.3%	38.4%	36.4%	36.7%	35.6%	38.1%	34.2%
Operating margin	26.6%	25.9%	18.1%	17.2%	15.2%	18.1%	23.2%	17.9%
Net margin	19.0%	18.3%	17.3%	16.2%	16.7%	-9.0%	23.1%	20.4%
Current ratio	1.46×	1.4×	1.61×	1.95×	1.54×	1.81×	1.57×	1.37×
Debt / equity	0.59×	0.79×	1.08×	1.28×	1.29×	1.68×	1.77×	3.14×
Interest coverage	13.06×	8.26×	5.01×	7.83×	5.36×	5.72×	6.5×	4.64×
Dividend yield	0.7%	0.8%	1.1%	1.4%	0.7%	1.1%	0.8%	0.3%
Payout ratio	17.9%	19.1%	21.0%	22.1%	22.4%	-46.6%	14.8%	4.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	34.3%	35.0%	37.8%	37.3%	35.6%	-18.7%	65.8%	76.0%
Return on invested capital	19.7%	17.6%	11.6%	10.9%	8.4%	7.1%	14.4%	9.9%
Return on assets	16.0%	14.4%	13.4%	11.8%	10.8%	-4.9%	16.1%	10.6%
Free cash flow yield	3.0%	3.0%	3.4%	3.4%	1.9%	4.6%	2.4%	4.4%
Earnings yield	3.7%	4.3%	5.1%	6.3%	3.3%	-2.4%	5.2%	6.7%
Enterprise value	$8.8B	$6.7B	$5B	$3.8B	$6.1B	$4.2B	$5.2B	$3.5B
Net debt / EBITDA	0.76×	1.34×	1.31×	1.58×	1.55×	-47.6×	1.47×	1.43×
Cash conversion cycle (days)	30	37	37	36	28	32	34	19