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, especially when considering its P/E ratio of 7, which is substantially lower than the peer average of 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 market may not be pricing the company's assets effectively relative to its peers.
In terms of peer comparisons, Beazer Homes' P/E ratio is notably lower than that of its competitors, which reinforces the notion of overvaluation. The company's recent stock performance shows a 1-week return of 4.56% compared to the S&P 500's 1.70%, but over the longer term, it has underperformed with a 1-year return of -31.11% versus the S&P 500's 14.08%. This disparity in returns further emphasizes the challenges Beazer Homes faces in justifying its current valuation.