Is Trex Co., Inc. overvalued or undervalued?

As of 3 October 2025, Trex Co., Inc. has moved from expensive to fair in its valuation grade. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 38, an EV to EBITDA of 24.64, and an EV to Sales of 7.12. In comparison, peers such as Armstrong World Industries, Inc. have a P/E of 38.75, while Mohawk Industries, Inc. presents a more attractive P/E of 17.49, indicating that Trex is positioned competitively within its industry.
Despite its fair valuation, Trex has underperformed relative to the S&P 500, with a year-to-date return of -23.67% compared to the S&P 500's 14.18%. This trend continues over longer periods, with a five-year return of -28.54% against the S&P 500's impressive 100.56%.