Is Century Communities, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Century Communities, Inc. 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, significantly lower than the industry average, while the Price to Book Value is 0.62 and the EV to EBITDA is 8.52, suggesting that the stock is not priced in line with its earnings potential compared to peers.
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. Meanwhile, M.D.C. Holdings, Inc. is considered fair with a P/E of 16.34, further highlighting Century's relative overvaluation. Additionally, Century Communities has underperformed against the S&P 500, with a year-to-date return of -13.47% compared to the index's 13.31%, reinforcing the notion that the stock may not be a compelling investment at its current price.