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, indicating a shift towards a less extreme valuation but still suggesting overvaluation. The company appears overvalued based on its current metrics, 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, peers such as Armstrong World Industries, Inc. have a P/E of 38.75 and an EV to EBITDA of 28.31, while Mohawk Industries, Inc. shows a significantly lower P/E of 17.49 and an EV to EBITDA of 8.52.
Trex's recent stock performance has been underwhelming, with a year-to-date return of -26.52% compared to the S&P 500's positive return of 13.30%, further reinforcing the notion of overvaluation.