AWI · Intrinsic value
Is Armstrong World Industries, Inc. (AWI) overvalued or undervalued?
Armstrong World Industries, Inc. (AWI) trades at the delayed market price of $168.16 a share. That price already implies revenue growth of 17.0% a year for 5 years. TickerWorth's fair value is $133.06 a share (priced within our range of $68.81 – $193.66). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is AWI fairly valued?
- Fair value
- $133.06
- Market price
- $168.16
- Downside to fair value
- 20.9%
- Verdict
- Priced within our range of $68.81 – $193.66
Reverse DCF: Today's price implies revenue growth of 17.0% a year for 5 years; our model assumes 7.6% a year on average over the same horizon.
What is AWI's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Industrials companies in US
Its strongest point: a profitable, high-quality business. Its weakest: recent price trend has been weak.
- Value · 46 of 100
Cheaper than 46% of Industrials companies in US
- Price vs worth · 33 of 100
- Quality · 81 of 100
More profitable than 81% of Industrials companies in US
- Financial health · 53 of 100
Financially stronger than 53% of Industrials companies in US
- Growth · 45 of 100
Growing faster than 45% of Industrials companies in US
- Momentum · 23 of 100
Outperformed 23% of Industrials companies in US over the past year
Confidence: High confidence · Scored
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AWI DCF valuation, input by input
TickerWorth's fair value for Armstrong World Industries, Inc. (AWI) is $133.06 a share, against the delayed market price of $168.16 (priced within our range of $68.81 – $193.66). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values AWI at about $114.48 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Armstrong World Industries, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.9%, with a long-run terminal growth rate of 2.5%. About 72% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 17.0% annual revenue growth for AWI. Our base case instead compounds to about 7.6% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, AWI's modeled DCF value ranges from about $82.73 to $178.48 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Armstrong World Industries, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of AWI's intrinsic value. Figures update as new filings and prices come in.
Every input behind AWI's DCF
| Input | Value |
|---|---|
| Base-year revenueARMSTRONG WORLD INDUSTRIES, INC. FY2025 10-K (accession 0001193125-26-065183): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $1,620,800,000 |
| Base EBIT marginARMSTRONG WORLD INDUSTRIES, INC. FY2025 10-K (accession 0001193125-26-065183): us-gaap:OperatingIncomeLoss 430,900,000 / revenue 1,620,800,000 = 26.59%, FY2025. | 26.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 11% → 9% → 8% → 6% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 4.7% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.17 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesARMSTRONG WORLD INDUSTRIES, INC. FY2025 10-K (accession 0001193125-26-065183): WeightedAverageNumberOfDilutedSharesOutstanding = 43,600,000 shares, FY2025. | 44M |
| Market priceBackup price feed · as of 2026-10-19 12:42 UTC | $168.16 |
Change AWI's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Armstrong World Industries, Inc. do?
What does it do?
Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. It operates in the Building Products & Equipment industry (Industrials sector), headquartered in United States. The company employs roughly 4,000 people.
How does it make money?
The business turns $1.7B in annual revenue into profit. Out of every $100 of sales, about $22 is left as operating profit (operating margin of 21.6%), after a 40% gross margin on the products/services it sells. After all costs, taxes and interest, 18.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.7× equity), comfortably covers its short-term bills (1.5× current ratio), and is currently profitable.
Who at AWI filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| TEMPLIN ROY W | Director | Grant / award | — | Form 4 for TEMPLIN ROY W (opens sec.gov in a new tab) | |
| Shurts Wayne | Director | Grant / award | — | Form 4 for Shurts Wayne (opens sec.gov in a new tab) | |
| Pitre Kathleen | Director | Grant / award | — | Form 4 for Pitre Kathleen (opens sec.gov in a new tab) | |
| Osborne William H | Director | Grant / award | — | Form 4 for Osborne William H (opens sec.gov in a new tab) | |
| Loughran Barbara | Director | Grant / award | — | Form 4 for Loughran Barbara (opens sec.gov in a new tab) | |
| HOLLERAN KEVIN | Director | Grant / award | — | Form 4 for HOLLERAN KEVIN (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is AWI's intrinsic value?
TickerWorth's blended fair value for Armstrong World Industries, Inc. (AWI) is $133.06 per share, versus a market price of $168.16 (priced within our range of $68.81 – $193.66).
Is AWI overvalued or undervalued?
Priced within our range of $68.81 – $193.66 at $168.16. We don't call AWI overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for AWI?
A WACC of 9.9% and a terminal growth rate of 2.5%.
Is Armstrong World Industries stock undervalued?
TickerWorth's fair value for Armstrong World Industries, Inc. (AWI) is $133.06 against a market price of $168.16. Our read: Priced within our range of $68.81 – $193.66. This is a model estimate, not investment advice.
Armstrong World Industries (AWI) DCF valuation and fair value
Our fair value for Armstrong World Industries, Inc. (AWI) is $133.06, built on a 9.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Armstrong World Industries stock?
Today's price implies revenue growth of 17.0% a year for 5 years; our model assumes 7.6% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $168.16. A model estimate, not investment advice.
Armstrong World Industries (AWI) insider trading
The most recent insider filing (SEC Form 4) for Armstrong World Industries, Inc. (AWI): TEMPLIN ROY W, Director, grant / award on 2026-06-12. The latest filings are listed on this page. A disclosure, not a signal to trade.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.