Is Cavco Industries, Inc. overvalued or undervalued?

As of 22 May 2025, the valuation grade for Cavco Industries, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 20, a Price to Book Value of 3.27, and an EV to EBITDA ratio of 14.76.
In comparison to its peers, Cavco Industries has a P/E ratio of 18.75, which is higher than M.D.C. Holdings, Inc. at 16.34 but lower than Frontdoor, Inc. at 16.10, indicating a competitive position within the industry. The company's ROCE stands at a robust 28.08%, suggesting efficient capital utilization. Notably, while Cavco has underperformed the S&P 500 year-to-date with a return of -8.18% compared to the index's 2.44%, it has outperformed over the longer term, with a three-year return of 111.24% versus 58.74% for the S&P 500.