The stock of Corning (NYSE:GLW, 30-year Financials) gives every indication of being modestly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus’ estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $42.85 per share and the market cap of $36.5 billion, Corning stock is estimated to be modestly overvalued. GF Value for Corning is shown in the chart below.
Because Corning is relatively overvalued, the long-term return of its stock is likely to be lower than its business growth, which averaged 9% over the past three years and is estimated to grow 7.73% annually over the next three to five years.
