MAS Valuation - Is Masco Corp Over or Undervalued?

Comprehensive analysis of Masco Corp valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

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Current Stock Price

$69.85

Market Cap

$14.56B

Valuation Date

Jan 14, 2026

Valuation Verdict

=

Fairly Valued

Based on valuation multiples, MAS appears reasonably priced relative to fundamentals. Metrics show balanced valuation.

Key Valuation Metrics

These four fundamental valuation ratios help determine if MAS is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)
Good
17.79x
Near market average
Investors pay $17.79 for every $1 of annual earnings
P/B Ratio (Price-to-Book)
High
164.42x
Premium to book value
Stock trades at 164.42x its book value per share
P/S Ratio (Price-to-Sales)
Good
1.92x
Low relative to sales
Market values each $1 of revenue at $1.92
EV/EBITDA
High
13.43x
Fair valuation
Enterprise value is 13.43x EBITDA

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.
P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.
P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.
EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How MAS Compares to Peers

What This Means for Investors

Balanced Valuation

Masco Corp (MAS) appears fairly valued based on current multiples. This balanced valuation suggests the stock is priced appropriately relative to its fundamentals. For investors, this means the stock may be suitable for those seeking exposure to Industrials without taking on significant valuation risk in either direction.

Bullish Considerations

  • P/E ratio below market average
  • Attractive price-to-sales multiple

Bearish Considerations

  • High premium to book value

Complete Your Analysis

Valuation is just one piece of the puzzle. Get the complete picture of MAS with our comprehensive analysis tools.

Frequently Asked Questions

What is MAS's P/E ratio and what does it mean?

MAS has a P/E (Price-to-Earnings) ratio of 17.79. This means investors are paying $17.79 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

Is MAS stock overvalued or undervalued?

Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), MAS appears fairly valued. Based on valuation multiples, MAS appears reasonably priced relative to fundamentals. Metrics show balanced valuation. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

What is a good P/E ratio for MAS?

There's no single "good" P/E ratio as it varies by industry and growth stage. For Masco Corp, compare the current P/E of 17.79 against: (1) Industry peers, (2) Historical average P/E for MAS, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

How do I use valuation ratios to make investment decisions?

Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare MAS against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

What is EV/EBITDA and why does it matter?

EV/EBITDA (Enterprise Value to EBITDA) is 13.43 for MAS. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.

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