DXP Enterprises, Inc.

NasdaqGS:DXPE Stock Report

Market Cap: US$1.1b

DXP Enterprises Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 DXPE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DXPE ($71.33) is trading below our estimate of fair value ($96.47)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DXPE. This is calculated by dividing DXPE's market cap by their current earnings.
What is DXPE's PE Ratio?
PE Ratio17.2x
EarningsUS$65.04m
Market CapUS$1.12b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DXPE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.1x
TRNS Transcat
55.9x14.9%US$1.0b
GIC Global Industrial
16.5x12.3%US$1.1b
MRC MRC Global
16x14.4%US$1.2b
DNOW DNOW
7.8x-12.7%US$1.6b
DXPE DXP Enterprises
17.2x11.1%US$1.1b

Price-To-Earnings vs Peers: DXPE is good value based on its Price-To-Earnings Ratio (17.2x) compared to the peer average (24.1x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BYU BAIYU Holdings
0.8xn/aUS$8.94m
No more companies available in this PE range
DXPE 17.2xIndustry Avg. 18.2xNo. of Companies7PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DXPE is good value based on its Price-To-Earnings Ratio (17.2x) compared to the US Trade Distributors industry average (18.2x).


Price to Earnings Ratio vs Fair Ratio

What is DXPE'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.

DXPE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.2x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: DXPE is good value based on its Price-To-Earnings Ratio (17.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


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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