Masco Corporation (MAS) Stock Valuation — PE Analysis
Construction Materials · NYSE
Current Price
$72.56
PE Ratio (TTM)
16.7x
Intrinsic Value
$67.83
-7.0% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Masco's established brands like Delta and Moen command strong consumer and professional recognition. This loyalty translates into pricing power and repeat business within the fixtures and appliances market.
↑Distribution Network Strength
The company benefits from extensive relationships with distributors and retailers. This broad reach ensures product availability and provides a competitive advantage in reaching a wide customer base.
↑Economies of Scale in Manufacturing
Masco's large-scale production facilities allow for cost efficiencies. This scale helps in maintaining competitive pricing and profitability, especially in a commoditized segment of the market.
INVESTMENT RISKS
↓Housing Market Cyclicality
Masco's performance is closely tied to the cyclical nature of the housing market. Downturns in new construction and home renovations directly impact demand for its products.
↓Raw Material Cost Volatility
Fluctuations in the cost of key raw materials like metals and plastics can significantly impact Masco's cost of goods sold. This volatility can squeeze profit margins if not effectively managed.
↓Supply Chain Disruptions
Global supply chain issues, including logistics challenges and component shortages, can impede production and delivery. This can lead to lost sales and increased operational costs.
Base case
MAS base case PE valuation
At a current price of $72.56, the base case PE valuation puts MAS fair value near $67.83 per share. That figure assumes 2.4% yearly earnings growth, a target PE multiple of 16x, and a 10% discount rate.
Intrinsic Value
$67.83
Margin of safety
-7.0%
Expected annual return
-1.3%
Base case assumptions: 2.4% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MAS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Masco Corporation respond.
Open PE Calculator for MASCompany Overview
Masco Corporation is a prominent global manufacturer and distributor of home improvement and building products, serving markets across North America, Europe, and other international regions. The company operates through two main segments. Its Plumbing Products division offers a vast array of items, from fixtures like faucets, showerheads, and valves to comprehensive bathing solutions such as tubs, shower bases, sinks, and toilets. This segment also provides high-end offerings like spas, exercise pools, and fitness systems, alongside crucial plumbing system components made from brass, copper, and composites, as well as connected water technologies, thermoplastic solutions, and PEX tubing. These products are sold under numerous recognized brands, including DELTA, HANSGROHE, KRAUS, HOT SPRING, and ENDLESS POOLS. The Decorative Architectural Products segment enhances both the aesthetic and functional aspects of homes. Its portfolio includes various paints, primers, specialty coatings, stains, and waterproofing products, along with associated applicators. It also supplies diverse cabinet and door hardware, functional hardware, wall plates, closet organization systems, and picture hanging accessories. Additionally, this segment provides decorative bath hardware, mirrors, shower doors, and a wide selection of indoor and outdoor lighting fixtures, such as ceiling fans, landscape lighting, and LED systems. Key brands in this segment include BEHR, KILZ, LIBERTY, and KICHLER. Masco distributes its extensive product range through a broad network of channels, encompassing plumbing, heating, and hardware wholesalers; home centers and online retailers; independent hardware stores; electrical and landscape distributors; lighting showrooms; building supply outlets; and various mass merchandisers. Masco Corporation was founded in 1929 and is headquartered in Livonia, Michigan.
Financial Metrics — MAS PE Stock Valuation Data
PE Ratio (TTM)
16.7x
PEG Ratio
1.15
Earnings Yield
6.14%
ROE (TTM)
-406.4%
Revenue/Share (TTM)
$38.34
Dividend Yield
1.74%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of MAS?
The trailing twelve-month PE ratio of MAS reflects how much investors pay per dollar of Masco Corporation's earnings. This metric is most useful when compared to Construction Materials peers and the company's own historical range.
Is MAS overvalued based on PE ratio?
MAS's PE of 16.7x combined with a PEG ratio of 1.15 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Construction Materials, a DCF analysis may be more appropriate.
How do I value MAS stock using PE ratio?
To value Masco Corporation using PE: (1) Compare the current PE (16.7x) against the Construction Materials median to assess relative pricing, (2) check the PEG ratio (1.15) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MAS?
MAS's PEG ratio is 1.15, calculated by dividing the PE ratio (16.7x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MAS stock valuation?
PE ratio gives a quick relative read — how MAS is priced versus Construction Materials peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MAS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value MAS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.