Is Century Communities, Inc. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Century Communities, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation outlook. The company appears to be overvalued based on key metrics, including a P/E ratio of 5, which is significantly lower than peers like Taylor Morrison Home Corp. at 10.67, and an EV to EBITDA of 9.17 compared to the industry average of 8.98. Additionally, the PEG ratio stands at 0.55, suggesting that the stock may not be adequately priced for its growth potential.
In comparison to its peers, Century Communities, Inc. is positioned unfavorably, with its valuation metrics indicating a higher relative expense. For instance, M.D.C. Holdings, Inc. has a fair valuation with a P/E of 16.34, while Century's lower P/E suggests it is not as attractive. The company's recent stock performance has also been disappointing, with a 1-year return of -35.33% compared to the S&P 500's 17.14%, reinforcing the notion that it is overvalued in the current market context.