Is Beazer Homes USA, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Beazer Homes USA, Inc. moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with 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 notably lower P/E ratio than the industry average of 11.43, suggesting that it is trading at a premium despite lower profitability indicators.
Additionally, the company's ROCE stands at 4.64% and ROE at 7.75%, which are relatively modest compared to the expectations set by its valuation. Given the lack of recent return data, we cannot draw a direct comparison to the S&P 500; however, the overall metrics indicate that Beazer Homes is not only overvalued but also may face challenges in justifying its current price in the market.