Trex Company Inc (TREX) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Trex Company Inc stock $62.08, price $54.74, upside +13.4%, quality 57 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $30.13 – $140.68 · fair‑value band $34.24 – $86.96 · the $54.74 price screens below the $62.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 3 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 5, 2026.
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Trex Company, Inc. manufactures and sells composite decking and railing products in the United States.
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It offers decking products and accessories that can be used for protection against fading, staining, mold, and scratching, including Trex Transcend, which are decking products that can also be used as cladding; Trex Signature; Trex Transcend Lineage; Trex Select; Trex Enhance; Trex Hideaway fastener collection; and Trex DeckLighting, an outdoor lighting system that includes a post cap, deck rail, riser, a soffit, and a recessed deck lights.
The company also offers railing products, such as Trex Signature X-Series Railing, Trex Signature aluminum railing, Trex Transcend Railing, Trex Select Railing, Trex Select T-Rail, Trex Enhance Railing; and fencing products, which includes Trex Seclusions that consists of structural posts, bottom rails, pickets, top rails, and decorative post caps.
In addition, it acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Protect joist, beam and rim tape, a self-adhesive butyl tape that protects wooden deck framing/substructure elements; Trex RainEscape Soffit Light, a plug-and-play LED Soffit light that is installed in the under-deck ceiling of a two-story deck; Trex Seal Ledger Flashing Tape, butyl flashing tape with an aluminum liner; Trex Pergola, Pergolas made from low maintenance aluminum reinforced cellular PVC; Trex Lattice outdoor boards; Trex Cornhole boards; Trex Blade, a specialty saw blade for wood-alternative composite decking; Trex SpiralStairs; and Trex Outdoor Kitchen cabinetry.
The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.
Stock analysis
Trex Company Inc (TREX) currently trades at $54.74, while our model-based Fair Value estimate is $62.08, implying the stock looks roughly 12% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $38.24 per share, and 1 of the 24 models we run sit above the $54.74 price.
Bear case: the Asset-Based group reads lowest at $6.47, and 23 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $34.24 (bear) to $86.96 (bull), the price of $54.74 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Trex Company Inc reported revenue of $1.2B in FY2025 versus $1.2B in FY2021, a compound −0.5%/yr. Reported net income was $190M in FY2025, compounding −2.3%/yr from FY2021.
Key figures
Market cap $5.6B Mid · P/E ratio 28.2 · P/S ratio 4.64 · EPS (TTM) $1.94 · Net margin 14.7% · Return on equity 17.7% · Return on assets (EBIT) 25.3% (5-year average) · Operating margin 20.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (low confidence).
What moves the price
The share trades about 4% below its 52-week high and 82% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −31% fair-value upside, at 13%, TREX screens cheaper than that median.
Fair Value models
Bear$34.24Fair Value $62.08Bull$86.96
Price $54.74 · Upside +13.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($1.66 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $122,574 and none bought.
SaleAmy M. FernandezSVP, CLO and Secretary1,050 shares at $50.07$52,574Aug 7, 2026
SaleJacob T. RudolphSVP, CHRO1,400 shares at $50.00$70,000Jun 25, 202610b5-1 plan
BuyB Andrew RoseDirector12,380 shares at $40.68$503,591Mar 3, 2026
BuyPrithvi GandhiSVP, Chief Financial Officer15,000 shares at $31.92$478,800Nov 14, 2025
Plus 14 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+2.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.9%
Start year 2020 (pandemic). Over 10 years: +10.3% a year
Revenue growth 29 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+3.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+3.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.3.3% vs 16.7%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.27% → 22%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+29.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +26.1% a year for the price and +3.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Trex maintains its lead in composite decking through product innovation and distribution shifts, yet softer demand in repair and remodel markets plus rising capital needs for capacity create pressure on returns.
Main risk: Three customers account for over 70 percent of net sales so the loss or reduced orders from any one could sharply cut revenue and margins.
Bull case: Trex could use efficiencies from its Arkansas plant and expanded PVC offerings plus distribution shifts to convert more wood users and defend margins against rivals.
Bear case: If customer concentration or intensified competition from AZEK materialises, Trex could face sustained volume declines and margin erosion in its core decking business.
Trex continues to expand its lead in composite decking through product innovation and distribution shifts. Softer demand in repair and remodel markets alongside rising capital needs for capacity and network changes now stand in contrast to that momentum. Will the efficiency from the new Arkansas plant and distribution model outweigh the pressure from weaker volumes, or will capital intensity hold back returns?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Building Products & Equipment · 255 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside+13.4% · Above median
Profitability
Return on equity (12 months)17.7% · Top 25%
Return on assets12.8% · Top 25%
Net margin (12 months)14.7% · Top 25%
Operating margin (12 months)20.6% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)7.8% · Above median
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Building Products & Equipment median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Trex Company Inc Fair Value". https://www.fairvalue-calculator.com/stock/TREX
Frequently asked questions
Is Trex Company Inc (TREX) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $62.08 versus a price of $54.74, about +13% upside (undervalued).
What is the fair value of TREX?
Our model-based fair value for Trex Company Inc is $62.08 (as of Nov 5, 2026), built from audited fundamentals. The current price: $54.74.
What is the quality score of TREX?
Trex Company Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Trex Company Inc (TREX)?
Our model-based price target is the fair value of $62.08 (as of Nov 5, 2026) from 24 valuation models. Cautious scenario $34.24, optimistic scenario $86.96. It is a calculation from audited fundamentals, not an analyst target.
What is the Trex Company Inc stock forecast for 2026?
Our models put fair value at $62.08, about +13% upside versus a price of $54.74 (undervalued). Cautious scenario $34.24, optimistic scenario $86.96. The calculation is refreshed regularly with new filings.
What is the revenue of Trex Company Inc (TREX)?
Trex Company Inc reported trailing-twelve-month revenue of about $1.2B (latest available figure, as of Nov 5, 2026).
What growth is priced into Trex Company Inc (TREX)?
For today's price to be fair in a discounted-cash-flow model, Trex Company Inc would have to grow free cash flow by +29.1 % per year for five years (discount rate 11.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.9 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of TREX use?
Our models discount Trex Company Inc at 11.0 %: a base by market capitalisation (mid), damped by beta 1.51, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Trex Company Inc that is +29.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.0 %) and the same formula as our fair value.
How much growth has Trex Company Inc (TREX) delivered so far?
Over the past 5 years revenue at Trex Company Inc grew +5.9 % a year. The price currently implies free-cash-flow growth of +29.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Trex Company Inc (TREX) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Trex Company Inc (+29.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Trex Company Inc (TREX)?
The free-cash-flow yield on the price is 2.22 %: that much free cash flow Trex Company Inc produces per unit of market value. When it exceeds the discount rate of our models (11.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Trex Company Inc (TREX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Trex Company Inc it is $62.08 per share (as of Nov 5, 2026), against a price of $54.74. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Trex Company Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, TREX trades below its calculated fair value: price $54.74, fair value $62.08, a gap of about +13% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TREX?
No. The price is what the market pays today ($54.74); the fair value is what the company's own numbers justify ($62.08). For Trex Company Inc the two are $7.34 per share apart. That gap is exactly why we show both numbers side by side.
How much is Trex Company Inc worth?
The market values Trex Company Inc at about $5.6B (market capitalisation, as of Nov 5, 2026). Per share that is $54.74; our models calculate a fair value of $62.08 per share.
What do the bullish and bearish scenarios say about TREX?
Our models span a range for Trex Company Inc: cautious scenario $34.24, base $62.08, optimistic $86.96 per share (as of Nov 5, 2026, price $54.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TREX?
Trex Company Inc trades at a price-to-earnings ratio of 28.2 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $62.08 is built from several models across several years. Median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), reported earnings, FY2021, FY2023 ex one-offs: 39.8. Other multiples: PEG 1.0, P/B 5.4, P/S 4.6, EV/EBITDA 18.0.
What is the PEG ratio of TREX?
The PEG ratio of Trex Company Inc is 1.00 (P/E divided by earnings growth, as of Nov 5, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Trex Company Inc (TREX)?
Balance-sheet figures for Trex Company Inc (as of Nov 5, 2026): return on equity 17.7%, debt of 0.04 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is TREX from its 52-week high?
Trex Company Inc trades at $54.74, about 4% below its 52-week high of $57.15 and 82% above the low of $30.13 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $62.08 is for.
Which stocks are comparable to Trex Company Inc?
From the same area (Industrials) we also value Johnson Controls International plc, Trane Technologies plc, Carrier Global Corporation, Compagnie de Saint-Gobain S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Trex Company Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $54.74, calculated fair value $62.08 (+13%), Quality Score 57/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TREX calculated?
We run Trex Company Inc through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $62.08 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Trex Company Inc currently trades 12% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Trex Company Inc (TREX)?
The closing price on Nov 6, 2026 was $54.74. Our model-based fair value is $62.08, about +13% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Trex Company Inc right now?
A fairly wide model range ($34.24 to $86.96) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Where does the earnings growth of Trex Company Inc (TREX) come from?
Earnings per share at Trex Company Inc grew +18.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +13.1 %, EBIT margin +2.9 %, tax rate +1.7 %, residual (interest, one-offs) +0.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Trex Company Inc
How large is the market capitalisation of Trex Company Inc (TREX)?
The market capitalisation of Trex Company Inc is $5.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Trex Company Inc (TREX)?
The price-to-sales ratio of Trex Company Inc is 4.64 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Trex Company Inc (TREX)?
Earnings per share at Trex Company Inc are $1.94 (price ÷ EPS = P/E 28.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Trex Company Inc (TREX)?
The net margin of Trex Company Inc is 14.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Trex Company Inc (TREX)?
The return on equity (ROE) of Trex Company Inc is 17.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Trex Company Inc (TREX)?
On an EBIT basis the return on assets of Trex Company Inc is 25.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Trex Company Inc (TREX)?
The operating margin of Trex Company Inc is 20.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Trex Company Inc (TREX)?
Revenue at Trex Company Inc is growing +7.8% versus a year earlier (3y avg +2.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Trex Company Inc (TREX)?
Earnings per share at Trex Company Inc are growing −15.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Trex Company Inc (TREX) carry?
The net debt of Trex Company Inc is $225M (fiscal year 2025, ≈ 1.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 5, 2026