PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Trex Co's PE Ratio without NRI is 46.44. Trex Co's 5-Year EBITDA growth rate is 14.60%. Therefore, Trex Co's PEG Ratio for today is 3.18.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Trex Co's PEG Ratio or its related term are showing as below:
TREX'
s PEG Ratio Range Over the Past 10 Years
Min: 0.53 Med: 1.21 Max: 29.23
Current: 3.18
During the past 13 years, Trex Co's highest PEG Ratio was 29.23. The lowest was 0.53. And the median was 1.21.
TREX's PEG Ratio is ranked worse than 73.73% of 609
companies
in the Construction industry
Industry Median: 1.33
vs TREX: 3.18
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Trex Co PEG Ratio Historical Data
The historical data trend for Trex Co's PEG Ratio 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
PEG Ratio
1.52
2.53
3.03
1.13
2.70
Trex Co Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
PEG Ratio
1.13
1.64
2.62
1.91
2.70
Competitive Comparison
For the Building Products & Equipment subindustry, Trex Co's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution
For the Construction industry and Industrials sector, Trex Co's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Trex Co's PEG Ratio falls into.
Trex Co PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Trex Co (NYSE:TREX) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Trex Co PEG Ratio Related Terms
Thank you for viewing the detailed overview of Trex Co's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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