Is Cavco Industries, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Cavco Industries, Inc. moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 20, an EV to EBITDA of 14.76, and a PEG ratio of 1.30. When compared to peers, Cavco's P/E of 23.10 is higher than Toll Brothers, Inc. at 11.10 and Taylor Morrison Home Corp. at 10.67, indicating a premium valuation relative to these competitors.
In terms of performance, Cavco Industries has outperformed the S&P 500 over various periods, with a year-to-date return of 26.31% compared to the S&P 500's 12.22%, and a three-year return of 168.14% versus 70.41% for the index. This strong performance reinforces the notion that the stock is fairly valued given its growth prospects.