Is Beazer Homes USA, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Beazer Homes USA, Inc. has moved from fair to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued based on its current metrics, with a P/E ratio of 7, which is notably lower than the peer average of approximately 11.43, and an EV to EBITDA ratio of 13.52 compared to the industry standard. Additionally, the Price to Book Value stands at 0.53, suggesting that the stock is trading below its book value, yet the overall valuation signals a premium that may not be justified.
In terms of peer comparison, Beazer Homes is facing stiff competition, with peers showing higher valuation ratios, such as the EV to EBITDA of 20.65 for its closest competitor. The company's recent stock performance has been lackluster, with a year-to-date return of -16.46%, significantly underperforming the S&P 500's gain of 13.30% in the same period, which reinforces the notion that the stock may be overvalued relative to its performance and industry peers.