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Stocks TREX DCF valuation

DCF valuation

What is Trex Co Inc worth?

With the base-case assumptions below, a discounted cash flow model on Trex Co Inc's reported free cash flow gives $24.62 per share. The share price was $44.79 on September 25, 2026, 82% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$134.5M
Average free cash flow, last 5 years
$81.6M
Cash
$6.5M
balance sheet of June 30, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
107,095,977
Revenue growth per year, last 5 years
5.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear1.0%1.5%2.0%10.0%$15.19-66%
Base6.0%4.5%2.5%9.0%$24.62-45%
Bull11.0%7.0%3.0%8.0%$42.21-6%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$31.40$33.48$36.01$39.17$43.24
8.0%$26.34$27.68$29.27$31.18$33.50
9.0%$22.64$23.56$24.62$25.85$27.31
10.0%$19.82$20.47$21.21$22.06$23.03
11.0%$17.60$18.08$18.61$19.22$19.90

Where the presets come from

Base: years 1 to 5 grow at Trex Co Inc's revenue growth rate over the last 5 fiscal years (5.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Trex Co Inc company page