We’ve recently updated our valuation analysis.

Masco Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MAS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA10.3x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.9x
CSL Carlisle Companies
15.1x6.8%US$13.2b
AOS A. O. Smith
45.3x11.4%US$10.7b
OC Owens Corning
6.9x-17.3%US$9.3b
ALLE Allegion
24.2x10.7%US$10.5b
MAS Masco
14.2x4.5%US$12.3b

Price-To-Earnings vs Peers: MAS is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (22.9x).


Price to Earnings Ratio vs Industry

How does MAS's PE Ratio compare vs other companies in the US Building Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.0%
n/an/an/a

Price-To-Earnings vs Industry: MAS is good value based on its Price-To-Earnings Ratio (14.2x) compared to the US Building industry average (14.8x)


Price to Earnings Ratio vs Fair Ratio

What is MAS'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.

MAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.2x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: MAS is good value based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

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

Below Fair Value: MAS ($54.35) is trading above our estimate of fair value ($54.19)

Significantly Below Fair Value: MAS is trading above our estimate of fair value.


Analyst Price Targets

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

The above table shows the analyst MAS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$54.35
US$56.17
+3.3%
15.6%US$74.00US$40.00n/a18
Jan ’24US$46.67
US$55.44
+18.8%
16.3%US$74.00US$40.00n/a18
Dec ’23US$51.76
US$55.06
+6.4%
16.6%US$74.00US$40.00n/a18
Nov ’23US$45.66
US$55.06
+20.6%
16.6%US$74.00US$40.00n/a18
Oct ’23US$46.69
US$63.50
+36.0%
11.6%US$76.00US$50.00n/a18
Sep ’23US$50.77
US$63.42
+24.9%
11.3%US$76.00US$50.00n/a19
Aug ’23US$55.03
US$63.89
+16.1%
12.1%US$76.00US$50.00n/a18
Jul ’23US$51.61
US$65.06
+26.1%
14.5%US$83.00US$50.00n/a18
Jun ’23US$55.67
US$66.94
+20.3%
13.6%US$83.00US$50.00n/a18
May ’23US$52.69
US$66.94
+27.1%
13.6%US$83.00US$50.00n/a18
Apr ’23US$51.55
US$73.24
+42.1%
9.9%US$87.00US$58.00n/a17
Mar ’23US$54.58
US$74.91
+37.3%
7.0%US$87.00US$67.00n/a17
Feb ’23US$63.36
US$74.75
+18.0%
9.8%US$86.00US$57.00US$54.3518
Jan ’23US$70.22
US$74.53
+6.1%
7.8%US$83.00US$63.00US$46.6716
Dec ’22US$65.67
US$72.32
+10.1%
9.3%US$82.00US$57.00US$51.7617
Nov ’22US$64.64
US$71.97
+11.3%
9.4%US$82.00US$57.00US$45.6616
Oct ’22US$55.88
US$69.38
+24.1%
9.7%US$83.00US$57.00US$46.6916
Sep ’22US$61.23
US$68.47
+11.8%
8.7%US$76.00US$57.00US$50.7715
Aug ’22US$59.71
US$68.07
+14.0%
8.3%US$76.00US$57.00US$55.0315
Jul ’22US$58.82
US$68.71
+16.8%
7.4%US$75.00US$57.00US$51.6114
Jun ’22US$60.62
US$68.93
+13.7%
7.2%US$75.00US$57.00US$55.6714
May ’22US$63.88
US$69.20
+8.3%
7.1%US$75.00US$57.00US$52.6915
Apr ’22US$60.99
US$64.71
+6.1%
6.6%US$71.00US$57.00US$51.5517
Mar ’22US$54.48
US$65.76
+20.7%
6.8%US$75.00US$60.00US$54.5817
Feb ’22US$55.08
US$65.00
+18.0%
6.9%US$71.00US$55.00US$63.3617

Analyst Forecast: Target price is less than 20% higher than the current share price.


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