TREX Relative Valuation
TREX'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, TREX is overvalued; if below, it's undervalued.
Historical Valuation
Trex Company Inc (TREX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.15 is considered Undervalued compared with the five-year average of 36.29. The fair price of Trex Company Inc (TREX) is between 40.35 to 62.86 according to relative valuation methord. Compared to the current price of 34.87 USD , Trex Company Inc is Undervalued By 13.58%.
Relative Value
Fair Zone
40.35-62.86
Current Price：34.87
13.58%
Undervalued
21.74
PE
1Y
3Y
5Y
Trailing
Forward
12.95
EV/EBITDA
Trex Company Inc. (TREX) has a current EV/EBITDA of 12.95. The 5-year average EV/EBITDA is 23.62. The thresholds are as follows: Strongly Undervalued below 11.41, Undervalued between 11.41 and 17.51, Fairly Valued between 29.72 and 17.51, Overvalued between 29.72 and 35.83, and Strongly Overvalued above 35.83. The current Forward EV/EBITDA of 12.95 falls within the Undervalued range.
17.28
EV/EBIT
Trex Company Inc. (TREX) has a current EV/EBIT of 17.28. The 5-year average EV/EBIT is 27.55. The thresholds are as follows: Strongly Undervalued below 14.04, Undervalued between 14.04 and 20.79, Fairly Valued between 34.30 and 20.79, Overvalued between 34.30 and 41.05, and Strongly Overvalued above 41.05. The current Forward EV/EBIT of 17.28 falls within the Undervalued range.
3.15
PS
Trex Company Inc. (TREX) has a current PS of 3.15. The 5-year average PS is 6.91. The thresholds are as follows: Strongly Undervalued below 2.86, Undervalued between 2.86 and 4.89, Fairly Valued between 8.93 and 4.89, Overvalued between 8.93 and 10.96, and Strongly Overvalued above 10.96. The current Forward PS of 3.15 falls within the Undervalued range.
14.65
P/OCF
Trex Company Inc. (TREX) has a current P/OCF of 14.65. The 5-year average P/OCF is 31.44. The thresholds are as follows: Strongly Undervalued below 10.08, Undervalued between 10.08 and 20.76, Fairly Valued between 42.12 and 20.76, Overvalued between 42.12 and 52.80, and Strongly Overvalued above 52.80. The current Forward P/OCF of 14.65 falls within the Undervalued range.
27.52
P/FCF
Trex Company Inc. (TREX) has a current P/FCF of 27.52. The 5-year average P/FCF is 72.17. The thresholds are as follows: Strongly Undervalued below 18.06, Undervalued between 18.06 and 45.11, Fairly Valued between 99.23 and 45.11, Overvalued between 99.23 and 126.29, and Strongly Overvalued above 126.29. The current Forward P/FCF of 27.52 falls within the Undervalued range.
Trex Company Inc (TREX) has a current Price-to-Book (P/B) ratio of 3.59. Compared to its 3-year average P/B ratio of 9.45 , the current P/B ratio is approximately -62.03% higher. Relative to its 5-year average P/B ratio of 11.71, the current P/B ratio is about -69.38% higher. Trex Company Inc (TREX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.36%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 0.99% , the current FCF yield is about -100.00% lower.
3.52
P/B
Median3y
9.45
Median5y
11.71
0.62
FCF Yield
Median3y
0.36
Median5y
0.99
Competitors Valuation Multiple
The average P/S ratio for TREX's competitors is 0.00, providing a benchmark for relative valuation. Trex Company Inc Corp (TREX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 22.09%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TREX decreased by 50.41% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 233.72M to 285.35M.
The secondary factor is the Margin Expansion, contributed 4.55%to the performance.
Overall, the performance of TREX in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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