Latest Ratios: P/E Ratio 21.9x · EV/EBITDA 16.3x · ROE 37.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.6B | $8.3B | $6.2B | $4.4B | $3.2B | $5.6B | $3.6B | $4.7B | $3.0B | $3.3B | $2.3B |
| Enterprise Value | $7.0B | $8.8B | $6.7B | $5.0B | $3.8B | $6.1B | $4.2B | $5.3B | $3.5B | $4.0B | $3.1B |
| P/E Ratio → | 21.94 | 26.99 | 23.48 | 19.70 | 15.95 | 30.40 | — | 19.38 | 16.31 | 27.40 | 22.35 |
| P/S Ratio | 4.09 | 5.14 | 4.30 | 3.40 | 2.58 | 5.03 | 3.80 | 4.48 | 3.11 | 3.65 | 2.79 |
| P/B Ratio | 7.52 | 9.25 | 8.21 | 7.44 | 5.95 | 10.70 | 7.90 | 12.75 | 11.61 | 7.78 | 8.74 |
| P/FCF | 26.94 | 33.86 | 33.80 | 29.42 | 29.58 | 51.79 | 21.81 | 41.76 | 23.10 | 40.44 | — |
| P/OCF | 18.65 | 23.44 | 23.31 | 18.86 | 17.45 | 29.71 | 16.29 | 25.46 | 14.92 | 19.15 | 47.23 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.40 | 4.66 | 3.84 | 3.05 | 5.54 | 4.46 | 5.06 | 3.62 | 4.43 | 3.66 |
| EV / EBITDA | 16.27 | 20.20 | 17.91 | 15.37 | 12.72 | 23.18 | 16.48 | 16.80 | 13.90 | 15.98 | 14.93 |
| EV / EBIT | 16.36 | 20.20 | 17.17 | 14.41 | 13.22 | 22.38 | — | 15.61 | 13.25 | 15.41 | 15.95 |
| EV / FCF | — | 35.56 | 36.63 | 33.23 | 34.98 | 57.13 | 25.59 | 47.15 | 26.86 | 49.00 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.6% | 40.6% | 40.2% | 38.4% | 36.4% | 36.7% | 35.6% | 38.1% | 34.2% | 35.7% | 36.6% |
| Operating Margin | 26.6% | 26.6% | 18.9% | 18.1% | 17.2% | 15.2% | 18.1% | 23.2% | 17.9% | 20.2% | 18.0% |
| Net Profit Margin | 19.0% | 19.0% | 18.3% | 17.3% | 16.2% | 16.7% | -9.0% | 23.1% | 20.4% | 25.1% | 10.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.2% | 37.2% | 39.3% | 39.7% | 37.8% | 38.1% | -20.6% | 76.7% | 58.4% | 65.4% | 17.2% |
| ROA | 16.4% | 16.4% | 15.1% | 13.3% | 11.8% | 10.8% | -5.2% | 14.3% | 10.6% | 12.3% | 4.0% |
| ROIC | 24.9% | 24.9% | 16.8% | 15.4% | 14.4% | 11.7% | 12.5% | 21.0% | 14.0% | 12.8% | 8.9% |
| ROCE | 26.5% | 26.5% | 17.8% | 15.7% | 14.1% | 11.0% | 11.8% | 18.1% | 11.9% | 11.5% | 7.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.79 | 1.08 | 1.28 | 1.29 | 1.68 | 1.77 | 3.14 | 2.03 | 3.28 |
| Debt / EBITDA | 1.23 | 1.23 | 1.59 | 1.98 | 2.32 | 2.54 | 2.98 | 2.07 | 3.23 | 3.44 | 4.26 |
| Net Debt / Equity | — | 0.47 | 0.69 | 0.96 | 1.09 | 1.10 | 1.37 | 1.65 | 1.89 | 1.65 | 2.75 |
| Net Debt / EBITDA | 0.97 | 0.97 | 1.38 | 1.76 | 1.96 | 2.17 | 2.44 | 1.92 | 1.95 | 2.79 | 3.57 |
| Debt / FCF | — | 1.70 | 2.83 | 3.80 | 5.40 | 5.34 | 3.79 | 5.39 | 3.76 | 8.56 | — |
| Interest Coverage | 13.13 | 13.13 | 8.66 | 7.37 | 10.51 | 8.73 | -3.27 | 9.09 | 7.08 | 7.44 | 4.66 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.46 | 1.46 | 1.40 | 1.61 | 1.95 | 1.54 | 1.81 | 1.57 | 1.37 | 2.40 | 1.81 |
| Quick Ratio | 1.00 | 1.00 | 0.96 | 1.07 | 1.35 | 1.11 | 1.34 | 1.13 | 1.26 | 2.20 | 1.33 |
| Cash Ratio | 0.42 | 0.42 | 0.32 | 0.36 | 0.58 | 0.47 | 0.79 | 0.29 | 0.59 | 0.59 | 0.63 |
| Asset Turnover | — | 0.84 | 0.78 | 0.77 | 0.73 | 0.65 | 0.55 | 0.70 | 0.52 | 0.48 | 0.48 |
| Inventory Turnover | 7.72 | 7.72 | 7.87 | 7.67 | 7.13 | 7.77 | 7.41 | 9.38 | 10.49 | 10.68 | 4.87 |
| Days Sales Outstanding | — | 29.34 | 34.92 | 31.51 | 33.80 | 36.45 | 31.40 | 40.47 | 30.54 | 49.63 | 24.02 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 0.7% | 0.8% | 1.1% | 1.4% | 0.7% | 1.1% | 0.8% | 0.3% | — | — |
| Payout Ratio | 17.9% | 17.9% | 19.1% | 21.0% | 22.1% | 22.4% | — | 14.8% | 4.3% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 3.7% | 4.3% | 5.1% | 6.3% | 3.3% | — | 5.2% | 6.1% | 3.6% | 4.5% |
| FCF Yield | 3.7% | 3.0% | 3.0% | 3.4% | 3.4% | 1.9% | 4.6% | 2.4% | 4.3% | 2.5% | — |
| Buyback Yield | 1.9% | 1.5% | 1.0% | 3.0% | 5.2% | 1.4% | 1.2% | 2.8% | 10.1% | 2.5% | 1.9% |
| Total Shareholder Yield | 2.8% | 2.2% | 1.8% | 4.1% | 6.6% | 2.2% | 2.3% | 3.6% | 10.4% | 2.5% | 1.9% |
| Shares Outstanding | — | $44M | $44M | $45M | $46M | $48M | $48M | $50M | $52M | $54M | $56M |
Commercial real estate exposure
According to current market data, AWI trades at a P/E of 22.90 and an EV/EBITDA of 16.94, suggesting that investors are pricing in a premium for the company's entrenched position in the North American ceiling market and the high-margin equity earnings generated by the WAVE joint venture.
The current valuation multiples appear to reflect a market expectation of sustained pricing power and successful product mix migration toward Architectural Specialties. However, the forward EV/EBITDA of 12.52 suggests that the market anticipates a moderation in earnings growth, warranting caution regarding whether the current premium is fully supported by organic volume expansion in a tightening commercial real estate environment.
Based on reported quarterly figures, AWI's ROIC has fluctuated significantly, ranging from a low of 3.0% in 2023Q4 to a peak of 12.6% in 2025Q4, indicating that the company's ability to compound returns on invested capital is highly sensitive to both operational volume and the timing of strategic acquisitions.
The inconsistency in ROIC suggests that while the core business model is inherently high-margin, the integration of inorganic growth in the Architectural Specialties segment may be temporarily diluting capital efficiency. Investors should monitor whether the company can stabilize these returns as it scales its specialty product offerings and manages the capital intensity of its manufacturing base.
As reported in financial statements, AWI's cash conversion cycle has shown notable instability, oscillating between 30 and 41 days over the last ten quarters, which highlights the inherent difficulty in balancing inventory levels with the project-based demand cycles characteristic of the commercial construction industry.
The fluctuation in the CCC suggests that the company may be struggling to optimize its inventory turnover, particularly as it navigates the transition toward more customized, non-standard products. This volatility in working capital management warrants further investigation, as it directly impacts the company's ability to generate consistent free cash flow during periods of shifting demand.
Based on recent SEC filings, AWI's debt-to-equity ratio has demonstrated significant variability, peaking at 1.08 in 2023Q4 before retreating to 0.64 in 2026Q1, which indicates a management strategy that utilizes balance sheet capacity opportunistically to fund share buybacks rather than maintaining a static capital structure.
The interest coverage ratio, which remains comfortably above 10x in most recent periods, suggests that the company faces minimal immediate risk regarding debt service obligations. However, the reliance on debt to support aggressive capital returns may limit the company's financial flexibility should the commercial real estate cycle experience a more severe or prolonged downturn.
The most commonly misapplied metric for AWI is the standard P/E ratio, which fails to account for the significant, non-cash amortization of intangible assets resulting from the company's aggressive acquisition strategy in the Architectural Specialties segment, thereby obscuring the true underlying cash-generative capacity of the business.
Analysts should instead focus on EV/EBITDA or P/FCF, while adjusting for the equity earnings from the WAVE joint venture, which are essentially pre-tax and highly efficient. Relying on GAAP-based P/E multiples likely leads to an undervaluation of the company's core earnings power by failing to distinguish between operational performance and accounting-driven non-cash charges.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AWI stock.
Armstrong World Industries, Inc.'s current P/E ratio is 21.9x. The historical average is 30.8x. This places it at the 47th percentile of its historical range.
Armstrong World Industries, Inc.'s current EV/EBITDA is 16.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.
Armstrong World Industries, Inc.'s return on equity (ROE) is 37.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 32.1%.
Based on historical data, Armstrong World Industries, Inc. is trading at a P/E of 21.9x. This is at the 47th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Armstrong World Industries, Inc.'s current dividend yield is 0.81% with a payout ratio of 17.9%.
Armstrong World Industries, Inc. has 40.6% gross margin and 26.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Armstrong World Industries, Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.