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Trex Co (Trex Co) Peter Lynch Fair Value

: $30.66 (As of Today)
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Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Trex Co's PEG is 1. Trex Co's 5-Year TTM EBITDA Growth Rate is 16.22. Trex Co's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $1.89. Therefore, the Peter Lynch Fair Value for today is $30.66.

As of today (2024-04-18), Trex Co's share price is $87.77. Trex Co's Peter Lynch fair value is $30.66. Therefore, Trex Co's Price to Peter Lynch Fair Value Ratio for today is 2.86.


The historical rank and industry rank for Trex Co's Peter Lynch Fair Value or its related term are showing as below:

TREX' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.01   Med: 1.34   Max: 3.03
Current: 2.86


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Trex Co was 3.03. The lowest was 1.01. And the median was 1.34.


TREX's Price-to-Peter-Lynch-Fair-Value is ranked worse than
91.22% of 467 companies
in the Construction industry
Industry Median: 0.98 vs TREX: 2.86

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Trex Co Peter Lynch Fair Value Historical Data

The historical data trend for Trex Co's Peter Lynch Fair Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Trex Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Peter Lynch Fair Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.47 33.07 44.63 37.79 30.66

Trex Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.79 29.70 25.03 32.26 30.66

Competitive Comparison

For the Building Products & Equipment subindustry, Trex Co's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Trex Co Price-to-Peter-Lynch-Fair-Value Distribution

For the Construction industry and Industrials sector, Trex Co's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Trex Co's Price-to-Peter-Lynch-Fair-Value falls into.



Trex Co Peter Lynch Fair Value Calculation

Trex Co's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 16.22 *1.89
=30.66

Trex Co's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.89.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Trex Co  (NYSE:TREX) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 16.22 instead of 15 in this case.

Trex Co's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=87.77/30.66
=2.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Trex Co Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Trex Co's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Trex Co (Trex Co) Business Description

Traded in Other Exchanges
Address
160 Exeter Drive, Winchester, VA, USA, 22603-8605
Trex Co Inc is a manufacturer of wooden alternative-decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in two reportable segments Trex Residential and Trex Commercial. The majority of revenue is derived from the Trex Residential segment.
Executives
Brenda Lovcik officer: SVP, Chief Financial Officer 2500 TREX WAY, C/O TREX COMPANY, INC., WINCHESTER VA 22601
Amy M. Fernandez officer: VP, GC and Secretary 2500 TREX WAY, WINCHESTER VA 22601
Melkeya Mcduffie director C/O CLEAN HARBORS INC., 42 LONGWATER DRIVE, NORWELL MA 02061
Michael F Golden director 2100 ROOSEVELT AVENUE, SPRINGFIELD MA 01104
Bryan Horix Fairbanks officer: VP and CFO 160 EXETER DRIVE, WINCHESTER VA 22603
Adam Dante Zambanini officer: Vice President, Marketing C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603
William R. Gupp officer: V.P. & General Counsel C/O TREX COMPANY, 160 EXETER DRIVE, WINCHESTER VA 22603
Dennis Charles Schemm officer: VP and Chief Financial Officer CONTINENTAL BUILDING PRODUCTS, 12950 WORLDGATE DRIVE, HERNDON VA 20170
Richard E Posey director C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603
Patricia B Robinson director
James E Cline officer: Vice President and CFO C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603
Jay M Gratz director RYERSON INC, 2621 W 15TH PLACE, CHICAGO IL 60608
Gena C Lovett director 11324 FOX CREEK FARM WAY, GREAT FALLS VA 22066
Christopher Paul Gerhard officer: Vice President, Sales 160 EXETER DRIVE, WINCHESTER VA 22603
Kristine L Juster director 1600 ROYAL ST, JASPER IN 47549