TEX Valuation

Terex Corp

Add to Watchlist

Advanced Chart

49.940

-2.19(-4.201%)1D

Overview
Forecast
Valuation
Earnings

TEX Relative Valuation

TEX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TEX is overvalued; if below, it's undervalued.

Historical Valuation

Terex Corp (TEX) is now in the Fair zone, suggesting that its current forward PE ratio of 9.98 is considered Fairly compared with the five-year average of 11.24. The fair price of Terex Corp (TEX) is between 37.06 to 88.41 according to relative valuation methord.

Relative Value

Fair Zone

37.06-88.41

Current Price：49.60

Fair

9.56

Trailing

Forward

7.88

EV/EBITDA

Terex Corp. (TEX) has a current EV/EBITDA of 7.88. The 5-year average EV/EBITDA is 7.42. The thresholds are as follows: Strongly Undervalued below 3.29, Undervalued between 3.29 and 5.36, Fairly Valued between 9.49 and 5.36, Overvalued between 9.49 and 11.55, and Strongly Overvalued above 11.55. The current Forward EV/EBITDA of 7.88 falls within the Historic Trend Line -Fairly Valued range.

9.72

EV/EBIT

Terex Corp. (TEX) has a current EV/EBIT of 9.72. The 5-year average EV/EBIT is 8.44. The thresholds are as follows: Strongly Undervalued below 2.77, Undervalued between 2.77 and 5.61, Fairly Valued between 11.28 and 5.61, Overvalued between 11.28 and 14.12, and Strongly Overvalued above 14.12. The current Forward EV/EBIT of 9.72 falls within the Historic Trend Line -Fairly Valued range.

0.61

Terex Corp. (TEX) has a current PS of 0.61. The 5-year average PS is 0.67. The thresholds are as follows: Strongly Undervalued below 0.43, Undervalued between 0.43 and 0.55, Fairly Valued between 0.79 and 0.55, Overvalued between 0.79 and 0.91, and Strongly Overvalued above 0.91. The current Forward PS of 0.61 falls within the Historic Trend Line -Fairly Valued range.

7.80

P/OCF

Terex Corp. (TEX) has a current P/OCF of 7.80. The 5-year average P/OCF is 7.92. The thresholds are as follows: Strongly Undervalued below 3.08, Undervalued between 3.08 and 5.50, Fairly Valued between 10.33 and 5.50, Overvalued between 10.33 and 12.75, and Strongly Overvalued above 12.75. The current Forward P/OCF of 7.80 falls within the Historic Trend Line -Fairly Valued range.

7.51

P/FCF

Terex Corp. (TEX) has a current P/FCF of 7.51. The 5-year average P/FCF is 10.58. The thresholds are as follows: Strongly Undervalued below 1.31, Undervalued between 1.31 and 5.94, Fairly Valued between 15.22 and 5.94, Overvalued between 15.22 and 19.85, and Strongly Overvalued above 19.85. The current Forward P/FCF of 7.51 falls within the Historic Trend Line -Fairly Valued range.

Terex Corp (TEX) has a current Price-to-Book (P/B) ratio of 1.72. Compared to its 3-year average P/B ratio of 2.19 , the current P/B ratio is approximately -21.27% higher. Relative to its 5-year average P/B ratio of 2.40, the current P/B ratio is about -28.21% higher. Terex Corp (TEX) has a Forward Free Cash Flow (FCF) yield of approximately 6.84%. Compared to its 3-year average FCF yield of 5.80%, the current FCF yield is approximately 17.98% lower. Relative to its 5-year average FCF yield of 6.53% , the current FCF yield is about 4.84% lower.

1.65

P/B

Median3y

2.19

Median5y

2.40

6.90

FCF Yield

Median3y

5.80

Median5y

6.53

Competitors Valuation Multiple

The average P/S ratio for TEX's competitors is 1.11, providing a benchmark for relative valuation. Terex Corp Corp (TEX) exhibits a P/S ratio of 0.61, which is -44.77% above the industry average. Given its robust revenue growth of 7.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Trinity Industries Inc

Greenbrier Companies Inc

0.46

2.74%

1.44B

Performance Decomposition

Market capitalization of TEX decreased by 11.76% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.04 to 18.69.

The secondary factor is the Revenue Growth, contributed 7.62%to the performance.

Overall, the performance of TEX in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.62%

1.38B → 1.49B

Revenue Growth

-52.46%

10.18 → 4.84

Margin Expansion

33.08%

14.04 → 18.69

P/E Change

-11.76%