Is Century Communities, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Century Communities, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on key ratios, including a P/E ratio of 5, an EV to EBITDA of 8.52, and a Price to Book Value of 0.62. In comparison to peers, Taylor Morrison Home Corp. has a significantly higher P/E ratio of 10.67, while Meritage Homes Corp. stands at 9.16, both suggesting that Century Communities is lagging behind its competitors in terms of valuation metrics.
The recent stock performance further supports this valuation perspective, as Century Communities has seen a year-to-date return of -18.06%, significantly underperforming the S&P 500's return of 13.30% over the same period. This trend, combined with the company's current valuation ratios, reinforces the conclusion that Century Communities, Inc. is overvalued in the current market environment.