Is Beazer Homes USA, Inc. overvalued or undervalued?

As of 21 May 2025, the valuation grade for Beazer Homes USA, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 7, a price-to-book value of 0.53, and an EV to EBITDA of 13.52.
In comparison to its peers, Beazer Homes has a P/E ratio of 6.82, which is slightly lower than the industry average, suggesting that while it is expensive, it may not be as overpriced relative to its direct competitors. Notably, the company's return on equity (ROE) stands at 7.75%, which is modest and reflects the challenges it faces in generating returns. Additionally, Beazer Homes has underperformed the S&P 500 over the past year, with a return of -19.09% compared to the index's 10.26%, reinforcing the notion of its overvaluation in the current market context.