DXP Enterprises Valuation

Is DX7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DX7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DX7 (€70) is trading below our estimate of fair value (€97.05)

Significantly Below Fair Value: DX7 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DX7?

Key metric: As DX7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DX7. This is calculated by dividing DX7's market cap by their current earnings.
What is DX7's PE Ratio?
PE Ratio17.6x
EarningsUS$65.04m
Market CapUS$1.14b

Price to Earnings Ratio vs Peers

How does DX7's PE Ratio compare to its peers?

The above table shows the PE ratio for DX7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.4x
BNR Brenntag
16.1x15.6%€8.8b
HMU HMS Bergbau
10.3x8.0%€131.8m
NWX Nordwest Handel
6.1xn/a€67.3m
ETE Ekotechnika
0.9xn/a€25.7m
DX7 DXP Enterprises
17.6x11.1%€1.1b

Price-To-Earnings vs Peers: DX7 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (8.4x).


Price to Earnings Ratio vs Industry

How does DX7's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DX7 17.6xIndustry Avg. 14.4xNo. of Companies11PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DX7 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the European Trade Distributors industry average (14.4x).


Price to Earnings Ratio vs Fair Ratio

What is DX7's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DX7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: DX7 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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