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Trex Company Inc
NYSE:TREX

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Trex Company Inc
NYSE:TREX
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Price: 38.79 USD -1.05% Market Closed
Market Cap: $4B

EV/IC

2.9
Current
53%
Cheaper
vs 3-y average of 6.2

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.9
=
Enterprise Value
$4.4B
/
Invested Capital
$1.4B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.9
=
Enterprise Value
$4.4B
/
Invested Capital
$1.4B

Valuation Scenarios

Trex Company Inc is trading below its 3-year average

If EV/IC returns to its 3-Year Average (6.2), the stock would be worth $82.61 (113% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-49%
Maximum Upside
+138%
Average Upside
50%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.9 $38.79
0%
3-Year Average 6.2 $82.61
+113%
5-Year Average 6.9 $92.3
+138%
Industry Average 2.9 $38.34
-1%
Country Average 1.5 $19.91
-49%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

Higher than 70% of companies in the United States of America
Percentile
70th
Based on 11 657 companies
70th percentile
2.9
Low
0 — 0.9
Typical Range
0.9 — 2.9
High
2.9 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 0.9
Median 1.5
70th Percentile 2.9
Max 566 432.7

Trex Company Inc
Glance View

Trex Company Inc. has carved out a remarkable niche in the outdoor living industry, becoming the leading manufacturer of wood-alternative decking and railing products. Founded in 1996, Trex demonstrated a visionary commitment to sustainability by pioneering composite materials that blend recycled wood and plastic. This innovative approach not only resonates with eco-conscious consumers but also provides durable, low-maintenance solutions that outperform traditional timber. As the popularity of outdoor spaces has surged, especially post-pandemic, Trex has capitalized on this trend, positioning itself at the forefront of a booming market that emphasizes quality, longevity, and environmental responsibility. Investors looking at Trex Company Inc. will find a company with a strong track record of revenue growth and profitability, driven by its innovative product offerings and robust brand loyalty. With a focus on expanding its production capacity and advancing its distribution capabilities, Trex is poised to capture a larger share of the outdoor living market. Furthermore, its strategic investments in research and development ensure that it stays ahead of competitors, continually enhancing its products to meet changing consumer demands. As sustainability becomes a focal point for both consumers and investors alike, Trex stands out as a compelling choice for those interested in combining financial opportunity with environmental stewardship.

TREX Intrinsic Value
41.45 USD
Undervaluation 6%
Intrinsic Value
Price $38.79
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