
210.18 USD (+29.5%)
11 analysts
What does it do?
Armstrong World Industries is a U.S. manufacturer of acoustic ceilings and building solutions, selling through distribution channels and commercial projects.
Key points
from its scores- ✓High-quality business7.6
- ✓Very solid balance sheet7.2
- ✕Poor share-price trend2.5
- ✕Little or no dividend4.4
- !Somewhat demanding valuation5.2
AI analysis
bottom line, main risk, context and newsFundamentals are solid, but valuation and momentum do not offer a clear entry point; wait for a better opportunity.
Armstrong World Industries shows solid financial health (DN/EBITDA 1.12, operating margin 21.57%) and outstanding quality (ROE 36.62%, ROIC 24.99%), with moderate revenue and earnings growth (11.2% and 12.4%), although its valuation is not particularly attractive (P/E 22.21) and momentum is weak (12-1: -14.7%).
The main risk is the sensitivity of the business to U.S. commercial construction activity, which could weaken if tighter financial conditions slow investment in non-residential buildings.
Context and risks
No recent relevant news and no material exposure to current macro factors: the company operates in the U.S. building products sector, with moderate debt (DN/EBITDA 1.12) and high operating margin (21.57%), so the rise in long-term rates and dollar strength do not significantly affect its business. There are no specific regulatory, geopolitical, or business model risks that justify an adjustment.
Is Armstrong World Industries stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 22.2 | 25.4 | −13% |
| EV / EBITDA | 16.4 | 14.5 | +13% |
| Price / book | 7.8 | 4.1 | +92% |
| Price / sales | 4.0 | 2.1 | +97% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.2 out of 10 (median for Industrials: 5.0).
Average analyst target: 210.18 USD, +29.5% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 22.2
- Forward P/E
- 16.9
- EV / EBITDA
- 16.4
- Price / book
- 7.8
- Price / sales
- 4.0
- PEG
- 2.02
- Market cap
- 6.9B USD
- Enterprise value
- 7.4B USD
Profitability
- ROE
- 36.6%
- ROA
- 10.6%
- ROIC (approx.)
- 25.0%
- Gross margin
- 40.3%
- Operating margin
- 21.6%
- Net margin
- 18.6%
- Free cash flow
- 220.8M USD
- FCF yield
- 3.2%
- Cash conversion
- 49%
Solvency
- Total debt
- 580.0M USD
- Net debt
- 501.4M USD
- Cash
- 78.6M USD
- EBITDA
- 449.3M USD
- Net debt / EBITDA
- 1.12
- Debt / equity
- 65.59
- Current ratio
- 1.52
- Quick ratio
- 0.97
Growth
- Revenue growth
- +11.2%
- Earnings growth
- +12.4%
- EPS (TTM)
- 7.31 USD
- EPS (forward)
- 9.58 USD
Dividend
- Dividend yield
- 0.8%
- Payout
- 18.1%
Risk and market
- Beta
- 1.16
- Analyst consensus
- Buy (11)
- Target price
- 210.18 USD
- 52-week range
- 150.28 – 206.08
Recent news
All AWI news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Armstrong World Industries
Is Armstrong World Industries stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%). Valuation score: 5.2 out of 10 (median for Industrials: 5.0). Average analyst target: 210.18 USD, +29.5% versus the price. This is not investment advice.
What score does Armstrong World Industries get on MeridIAn Screener?
It scores 6.0 out of 10, rank 960 of 2,130 (better than 51% of the companies analysed). Its strongest category is Quality / Moat (7.6) and its weakest, Momentum (2.5). Analysis of 08/10/2026.
What is Armstrong World Industries's P/E ratio?
Its P/E is 22.2: the share price equals 22.2 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 16.9.
How much is Armstrong World Industries worth on the stock market?
Its market capitalisation is 6.9B USD and its enterprise value, debt included, is 7.4B USD.
How much debt does Armstrong World Industries have?
Its net debt (debt minus cash) is 501.4M USD. That is 1.12 times its EBITDA; the Industrials median is 1.58.
Does Armstrong World Industries pay a dividend?
Yes: its dividend yield is 0.84% and it pays out 18% of its earnings.
How has Armstrong World Industries stock performed over the last year?
It has fallen 15.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 150.28 and 206.08 USD. Past performance does not guarantee future results.
What do analysts think of Armstrong World Industries?
11 analysts cover it; their average recommendation is “Buy” and their average target is 210.18 USD (+29.5% versus the price). It is an estimate, not market data.
