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. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 5, a Price to Book Value of 0.62, and an EV to EBITDA of 8.52, which suggest that the stock is not priced attractively compared to its peers.
In comparison to its industry, Century Communities, Inc. has a lower P/E ratio than Taylor Morrison Home Corp., which stands at 10.67, indicating that Century is priced less favorably. Furthermore, its EV to EBITDA ratio is higher than that of Meritage Homes Corp. at 8.47, reinforcing the notion of overvaluation. Notably, Century has underperformed against the S&P 500 over the past year, with a return of -40.78% compared to the S&P 500's 14.08%, highlighting the challenges the company faces in the current market environment.