Mueller Industries (MLI) began trading on a split adjusted basis on July 1, 2026, after completing a two-for-one stock split that also raised authorized common shares from 250,000,000 to 500,000,000.

Despite the stock split, Mueller Industries enters the adjustment phase after a 1 month share price return that declined 17.46% and a 3 month share price return that fell 7.51%. However, its 1 year total shareholder return of 33.34% and very large 5 year total shareholder return of about 5x highlight a strong longer term track record.

If the stock split has you reconsidering your watchlist, this is an opportunity to look beyond industrials and check out 18 top founder-led companies

After a sharp pullback around the stock split, Mueller Industries still sits on a multi year total return of about 5x. Is more of the opportunity already realized, or does the current valuation leave meaningful upside on the table?

Preferred P/E of 14.9x: Is it justified?

With Mueller Industries last closing at $56.99, the stock is trading on a P/E of 14.9x, which screens as inexpensive compared with both the broader US market and Machinery peers.

The P/E multiple captures how much investors are currently paying for each dollar of earnings and is often a quick way to compare valuation across industrial stocks that already produce consistent profits. For Mueller Industries, that lens connects directly to earnings quality, return on equity and how much growth investors expect to continue.

On the quality side, Mueller Industries reports high quality earnings, a return on equity of 25.5% that is classified as high, and earnings growth of 35.8% over the past year, ahead of its 13.5% per year average over the past 5 years. Against that backdrop, a 14.9x P/E looks restrained, especially when set against the estimated fair P/E of 24.6x. That fair ratio work suggests the market could move toward this level if sentiment aligned more closely with fundamentals.

The comparative gap is also clear against peers. The current 14.9x P/E sits well below the US Machinery industry average of 26.8x and the peer average of 28.5x. This points to the market assigning Mueller Industries a sizeable discount despite faster recent earnings growth than the Machinery industry overall. Explore the SWS fair ratio for Mueller Industries

Result: Price-to-Earnings of 14.9x (UNDERVALUED)

However, Mueller Industries still faces risks if earnings growth slows from recent rates or if demand for copper, brass, and aluminum products softens further.

Another view on Mueller Industries: DCF says the stock is roughly full

While the 14.9x P/E suggests Mueller Industries looks inexpensive against peers and a 24.6x fair ratio, the SWS DCF model tells a cooler story. At $56.99 versus an estimated future cash flow value of $56.11, the stock screens as slightly overvalued rather than clearly cheap. Which signal carries more weight for you?

For a closer look at how cash flows, discount rates, and terminal assumptions shape that result, Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mueller Industries for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 45 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Given the mixed signals around Mueller Industries, this is a good time to review the data yourself and consider how the risks and rewards balance out. To see a concise breakdown of both sides of the story, start with 4 key rewards and 1 important warning sign

Looking for more investment ideas beyond Mueller Industries?

If Mueller Industries has sharpened your focus on quality and price, do not stop here. Use the Simply Wall St Screener to surface fresh opportunities that match your style.

• Target long term compounding potential by scanning companies that appear cheap on fundamentals with the 45 high quality undervalued stocks.
• Build a steadier income stream by reviewing companies highlighted in the 9 dividend fortresses.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.