Is Century Communities, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Century Communities, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 5, which is significantly lower than the peer average, while the Price to Book Value is 0.62 and the EV to EBITDA is 8.52, further suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Taylor Morrison Home Corp. has a P/E ratio of 10.67 and an EV to EBITDA of 8.98, indicating a more favorable valuation, while M.D.C. Holdings, Inc. has a P/E of 16.34, reinforcing the notion that Century Communities is lagging behind its competitors. Additionally, the company's stock has underperformed against the S&P 500, with a year-to-date return of -9.96% compared to the index's 13.31%, highlighting the challenges it faces in the current market environment.