Is Trex Co., Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Trex Co., Inc. has moved from very expensive to expensive. This suggests that while the company remains costly, it is not as excessively priced as before. Based on the current metrics, Trex appears to be overvalued, with a P/E ratio of 38, a Price to Book Value of 8.25, and an EV to EBITDA of 24.64.
In comparison to its peers, Trex's P/E ratio of 38 is higher than Armstrong World Industries, Inc. at 38.74 and significantly above Mohawk Industries, Inc. at 17.49, indicating that Trex is priced at a premium relative to its industry competitors. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -26.52% compared to the S&P 500's gain of 13.30%, reinforcing the narrative that Trex may be overvalued in the current market environment.