4 models fit DXP Enterprises Inc. Common Stock and they agree: 4 of 4 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze52
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionDXP Enterprises Inc. Common Stock (DXPE)
Fair value (4 models)
$64.84
ACCE price target
$195
Rating
Overvalued
Horizon
12 months
Fair value published on 23 Oct 2026, 10:03 CEST; previously $68.54 since 19 Oct 2026, 17:05 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 17:05 CEST.
Price used: $156 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
141.0% above
-58.5% to fair value
ACCE score
64
out of 100
Analysts
50% buy
2 covering
P/E
27.8x
forward 13.6x
1-year return
+33.4%
Dividend yield
0.00%
DXP Enterprises Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
DXP Enterprises distributes MRO and specialty industrial products (pumps, valves, fittings, safety and fluid handling equipment) through a branch network and its Service Centers, selling mainly to oil and gas, water, and general manufacturing customers. The attraction is the service layer: DXP's pump repair, packaging and integrated supply operations lock in recurring maintenance spend and carry gross margins of 31.8%, well above what a pure parts distributor earns. Revenue growth of 15.6% is running ahead of most of the sector, and the forward P/E of 13.6 against a trailing 31.3 implies earnings are expected to recover sharply, which is the central question to test. Return on equity of 18.5% and a 9.6% operating margin say the business is converting that growth into profit, though the margin gap between gross and operating level is where integration costs and branch overhead need checking. With a score of 71/100 and no index membership, the name sits in the small-to-mid cap bucket where a fundamental work-up can still find mispricing, so it merits a deeper look at the earnings bridge and the durability of the service mix.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Valuation stretched on trailing earnings
Trailing P/E of 30.9 and EV/EBITDA of 15.4 sit well above the forward P/E of 13.6, so the price leans on earnings still to come. The stock trades 141.0% above the model fair value of $64.84.
moderate
Leverage elevated
Debt/Equity of 1.97 leaves little room for a downturn in industrial demand, and a 4.4% net margin gives a thin cushion to service that debt.
moderate
Insider selling without buying
Last 10 disclosed insider trades were $0.00M in buys and $1.11M in sales, a one-directional signal from people closest to the business.
moderate
Sequential revenue dip
Revenue fell 1.1% quarter on quarter despite 15.6% year-on-year growth, which may point to a slowing run rate worth watching in the next report.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-10-19 · prices to Oct 23, 2026
Why it could do well
Revenue grew 15.6% year over year, and has averaged 14.9% a year over five years, showing sustained demand for the business.
Return on equity of 18.5% shows the company earns a solid return on the shareholder money invested in it.
Analysts' mean price target of $200.00 sits 11.7% above the current share price, and the company beat earnings estimates by 10.7%.
Why it could disappoint
At $156.26, the shares trade 141.0% above the model fair value of $64.84, which is a steep premium for any buyer.
Debt to equity of 1.97 and free cash flow of $54M leave little cushion if industrial and energy spending slows.
The trailing P/E of 30.9x is well above the sector median forward P/E of 23.4x, and the free cash flow yield is only 2.0%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where DXPE's valuation models land
Price
$156.26
Model fair value
$64.84
Model range
$59.49 to $68.98
Fair value $64.84
Price $156
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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