Stock fact sheet · data as of
Armstrong World Industries, Inc. (AWI): fair value, margin of safety and Wheel Score
Basic Materials · Construction Materials · United States · High Growth
Is AWI undervalued?
Armstrong World Industries, Inc. (AWI) closed at 166.59 on 16 Oct 2026, close to the GLS average fair value of 158.94 (4.8% above fair value). 4 of the 9 models that produced a number sit above the price, 5 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between DDM (19.95) and GLS Growth (371.82). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files AWI under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for AWI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 142.88 | -14% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 58.93 | -65% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 254.16 | +53% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 98.44 | -41% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 371.82 | +123% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 179.20 | +8% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 222.70 | +34% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 19.95 | -88% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 82.43 | -51% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -14.97 | -109% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 207.60 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Armstrong World Industries, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 8.8/10 puts AWI among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 21.5%, ROE 34.3%, ROA 16.0% - with debt at 0.59 times equity and a free-cash-flow yield of 3.6%.
The dividend yield is 0.81% with a payout ratio of 18% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Mineral Fiber 61%, Architectural Specialties 39% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 21.5% |
|---|---|---|---|
| GLS Moat | 8.8 / 10 | ROE | 34.3% |
| Debt / equity | 0.59 | ROA | 16.0% |
| Free-cash-flow yield | 3.6% | Payout ratio | 18% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 72: Good
With a Wheel Score of 72 - the Good band - Armstrong World Industries, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 10/25, Health 13/20, Moat 13/15, Premium 20/20, Stability 15/20; Value (10/25) scores lowest.
Implied volatility is 35% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (20 of 20 points). Chain open interest is thin - 1,565 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 415k shares a day on a market cap of $7.0B, with a beta of 1.16; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 10 / 25 | -5% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 13 / 15 | moat 8.8/10 | |
| Premium | 20 / 20 | implied volatility 35% | |
| Stability | 15 / 20 | 415k shares/day, $7.0B cap, beta 1.16 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Armstrong World Industries, Inc. reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Construction Materials
The 12 companies below are the closest to Armstrong World Industries, Inc. by market cap within the Construction Materials industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SSD Simpson Manufacturing Co., Inc. | 171.08 | 136.82 | -25% | 64Fair | $7.0B |
| ACA Arcosa, Inc. | 147.01 | 99.18 | -48% | 47Weak | $7.2B |
| SPXC SPX Technologies, Inc. | 168.23 | 150.84 | -12% | 64Fair | $8.4B |
| BLDR Builders FirstSource, Inc. | 53.68 | 54.24 | +1% | 68Good | $5.8B |
| OC Owens Corning | 113.69 | 149.84 | +24% | 45Weak | $9.0B |
| WMS Advanced Drainage Systems, Inc. | 125.19 | 121.88 | -3% | 72Good | $9.4B |
| EXP Eagle Materials Inc. | 170.58 | 190.85 | +11% | 76Good | $5.2B |
| FBIN Fortune Brands Innovations, Inc. | 39.96 | 30.61 | -31% | 60Fair | $4.8B |
| TREX Trex Company, Inc. | 44.37 | 39.48 | -12% | 67Good | $4.5B |
| GFF Griffon Corporation | 93.21 | 103.26 | +10% | 71Good | $4.3B |
| CSL Carlisle Companies Incorporated | 335.49 | 268.81 | -25% | 59Fair | $13.3B |
| MAS Masco Corporation | 72.58 | 77.38 | +6% | 77Good | $14.3B |
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Start free See the Sunday ScanQuestions about AWI
Is AWI undervalued right now?
Not meaningfully: at 166.59 the stock trades within a few percent of the GLS average fair value of 158.94 (4.8% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of AWI and what does it mean?
AWI scores 72 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AWI?
158.94 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Armstrong World Industries, Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AWI have listed options, and how liquid are they?
Yes. The nightly snapshot found 254 listed contracts with 1,565 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.