WallStSmart
TRN

Trinity Industries Inc

NYSE: TRN · INDUSTRIALS · RAILROADS

$36.49
+0.58% today

Updated 2026-06-05

Market cap
$2.58B
P/E ratio
10.23
P/S ratio
1.25x
EPS (TTM)
$3.17
Dividend yield
3.79%
52W range
$22 – $37
Volume
0.7M

Trinity Industries Inc (TRN) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for TRN.

WallStSmart Verdict
Fairly
Valued

Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.

Smart Value Score: 67 / 100
P/E (TTM)
10.2x
vs 5Y median of 14.7x
PEG
0.69
Under 1.0 = undervalued
Margin of Safety
-81.34%
Fair value $17.47 vs $36.49
EV / EBITDA
0.0x

TRN historical valuation range

Where current P/E sits in TRN's own 5Y range.

NOW
8.6x
5Y Low
11.1x
25th
14.7x
Median
20.1x
75th
34.4x
5Y High
TRN is trading cheaper than 81% of the last 5Y.
19th percentile · Historically cheap

TRN intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$36.49
Market value
Intrinsic value
$17.47
DCF estimate
Margin of safety
-81.34%
-52.1% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

TRN valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

PEG ratio under 1.0
PEG of 0.69 indicates growth is outpacing the multiple. Traditionally a buy signal for quality compounders.
P/E near 5Y low
Current P/E sits in the 19th percentile of its 5Y range. Historically cheap relative to its own history.
Premium to fair value
Price exceeds DCF intrinsic value by 81.3%. Limited downside protection.

P/E Ratio — History

Current: 10.23x

P/S Ratio — History

Current: 1.25x

Is TRN overvalued in 2026?

Trinity Industries Inc (TRN) currently trades at $36.49 per share with a market capitalization of $2,579,159,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 67/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

The stock trades at a P/E ratio of 10.2x, below its 5-year median of 14.7x. The PEG ratio of 0.69 suggests earnings growth is outpacing the multiple, a classic sign of undervaluation.

Looking at its own history, TRN is currently trading cheaper than 81% of the last 5Y on P/E. This places it in the 19th percentile of its historical range, a level that has historically coincided with attractive entry points.

Our discounted cash flow model estimates TRN's intrinsic value at $17.47 per share, against the current market price of $36.49. This implies a premium to fair value of -81.34%. The current price sits well above what projected cash flows justify, implying investors are paying for growth that has not yet materialized.

The Piotroski F-Score of 6/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.

Bottom line: TRN trades at a fair valuation on our framework, with a Smart Value Score of 67/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.

Frequently asked questions

Is TRN overvalued?

TRN scores 67/100 on our Smart Value Score (Grade B), a mixed overall profile. On valuation specifically, the DCF puts intrinsic value below the current price, so the stock is expensive on cash flow today. The score reflects growth and quality carrying it, not a cheap entry point.

What is TRN's fair value?

Our DCF model estimates TRN's intrinsic value at $17.47 per share, versus the current price of $36.49, a margin of safety of -81.34%. Fair value is the present value of the cash flows we project the business to produce, so a price above it means the market is paying up for growth the model does not yet assume.

What P/E ratio does TRN trade at?

TRN trades at a P/E of 10.2x on trailing twelve-month earnings, against a 5-year median of 14.7x. P/E is what you pay per dollar of profit, and sitting below its own median means the stock is cheaper than usual relative to its earnings.

Is TRN a buy based on valuation?

Our Smart Value rating for TRN is Buy, from a Smart Value Score of 67/100 that blends growth, quality, and valuation. The profile is balanced and best suited to investors who already have a thesis. This is research to inform your decision, not personalized financial advice.

How does TRN's valuation compare to its history?

On P/E, TRN sits in the 19th percentile of its own 5Y range, historically cheap relative to where it has traded. A low percentile means today's multiple is near the bottom of its historical band.

What is TRN's Smart Value Score?

TRN's Smart Value Score is 67/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.