4 models fit Terex Corporation Common Stock and they partly agree: 2 of 4 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionTerex Corporation Common Stock (TEX)
Fair value (4 models)
$36.70
ACCE price target
$58.00
Rating
Overvalued
Horizon
12 months
Fair value published on 24 Oct 2026, 17:04 CEST; previously $39.89 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 17:04 CEST.
Price used: $51.29 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
39.8% above
-28.5% to fair value
ACCE score
51
out of 100
Analysts
64% buy
14 covering
P/E
24.5x
forward 8.6x
1-year return
-9.7%
Dividend yield
1.30%
Terex Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Terex makes mobile cranes, aerial work platforms and materials processing equipment, and its Materials Processing segment is the part of the business most often cited as the source of its earnings mix. Its ground in construction equipment gives it exposure to infrastructure and non-residential building spending, though it competes against larger, better-capitalised peers in cranes and lifts. The stock's most notable feature is the gap between trailing and forward earnings: a 25.2 trailing P/E against a 9.8 forward P/E, alongside 50.5% revenue growth, suggests the market is pricing in a sharp step-up in earnings that has not yet shown up in reported results. With a 7.2% operating margin and a 4.2% ROE, the business is far from a high-return compounder, so the case rests on margin recovery being delivered rather than assumed. The stock sits outside any major index, which may keep coverage thin and leave the valuation gap open for longer, and that is worth a deeper look at whether the forward estimates hold up.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings falling despite revenue growth
Revenue rose 50.5% year on year while earnings fell 11.9%, and the net margin of 2.2% leaves little cushion if costs keep climbing.
moderate
Leverage elevated
Debt to equity of 1.34 is high for an industrial with a 4.2% ROE, so refinancing or a downturn would bite harder than the free cash flow of $322M suggests.
moderate
Score slipping over 90 days
The ACCE score fell from 57 to 52 over 90 days, with the quality and momentum components weak at 38 and 25.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue rose 50.5% year over year, with the merger driving growth well above the 12.0% five-year average.
Trailing free cash flow reached $322M over the last twelve months, and the forward P/E of 8.6x sits well below the sector median of 23.8x.
Why it could disappoint
Net margin of 2.2% and return on equity of 4.2% leave little profit from each dollar of sales or equity.
Debt to equity of 1.34 means the balance sheet carries heavy borrowing relative to shareholder equity.
The stock trades 39.8% above the model fair value of $36.70, and the price implies yearly cash flow growth of 7.9% forever.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 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 TEX's valuation models land
Price
$51.29
Model fair value
$36.70
Model range
$24.93 to $49.84
Fair value $36.70
Price $51.29
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
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores