Terex Valuation

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

Below Fair Value: TEX ($53.5) is trading below our estimate of fair value ($68.11)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TEX 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/Revenue0.8x
Enterprise Value/EBITDA5.6x
PEG Ratio-3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
FSS Federal Signal
28.4x8.3%US$5.1b
ALSN Allison Transmission Holdings
9.7x4.5%US$6.5b
OSK Oshkosh
10.2x1.6%US$7.0b
TRN Trinity Industries
17.9x13.4%US$2.6b
TEX Terex
7x-2.4%US$3.6b

Price-To-Earnings vs Peers: TEX is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (16.6x).


Price to Earnings Ratio vs Industry

How does TEX's PE Ratio compare vs other companies in the US Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TEX is good value based on its Price-To-Earnings Ratio (7x) compared to the US Machinery industry average (21.8x).


Price to Earnings Ratio vs Fair Ratio

What is TEX'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.

TEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: TEX is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).


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 TEX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$53.50
US$63.64
+19.0%
10.9%US$75.00US$48.00n/a14
Jun ’25US$59.67
US$63.64
+6.7%
10.9%US$75.00US$48.00n/a14
May ’25US$55.78
US$63.21
+13.3%
10.9%US$75.00US$48.00n/a14
Apr ’25US$63.10
US$61.57
-2.4%
12.9%US$75.00US$44.00n/a14
Mar ’25US$56.69
US$61.21
+8.0%
12.2%US$75.00US$44.00n/a14
Feb ’25US$62.66
US$59.00
-5.8%
12.7%US$75.00US$44.00n/a14
Jan ’25US$57.46
US$59.00
+2.7%
11.7%US$75.00US$50.00n/a13
Dec ’24US$51.52
US$59.54
+15.6%
12.6%US$73.00US$50.00n/a13
Nov ’24US$46.85
US$61.62
+31.5%
14.0%US$75.00US$50.00n/a13
Oct ’24US$57.62
US$67.46
+17.1%
10.0%US$76.00US$51.00n/a13
Sep ’24US$62.88
US$68.67
+9.2%
10.1%US$80.00US$51.00n/a15
Aug ’24US$62.03
US$61.37
-1.1%
9.2%US$72.00US$48.50n/a15
Jul ’24US$59.83
US$58.70
-1.9%
11.4%US$72.00US$48.50n/a15
Jun ’24US$47.69
US$57.72
+21.0%
11.4%US$72.00US$48.50US$59.6716
May ’24US$46.00
US$57.30
+24.6%
14.4%US$72.00US$45.50US$55.7815
Apr ’24US$48.38
US$58.12
+20.1%
11.1%US$72.00US$45.50US$63.1015
Mar ’24US$59.99
US$58.30
-2.8%
10.6%US$72.00US$45.50US$56.6916
Feb ’24US$51.70
US$50.34
-2.6%
13.0%US$64.00US$38.00US$62.6616
Jan ’24US$42.72
US$49.03
+14.8%
11.5%US$64.00US$38.00US$57.4616
Dec ’23US$45.29
US$45.84
+1.2%
15.7%US$64.00US$35.00US$51.5216
Nov ’23US$40.97
US$45.53
+11.1%
15.5%US$64.00US$35.00US$46.8516
Oct ’23US$29.74
US$44.94
+51.1%
19.8%US$64.00US$33.00US$57.6216
Sep ’23US$33.19
US$44.94
+35.4%
19.8%US$64.00US$33.00US$62.8816
Aug ’23US$33.49
US$42.97
+28.3%
24.2%US$64.00US$30.00US$62.0316
Jul ’23US$27.93
US$48.28
+72.9%
17.7%US$64.00US$33.00US$59.8316
Jun ’23US$35.14
US$49.53
+41.0%
15.9%US$64.00US$38.00US$47.6916

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


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