Is Green Brick Partners, Inc. overvalued or undervalued?

As of 9 April 2025, the valuation grade for Green Brick Partners, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 6, significantly lower than its peers such as M.D.C. Holdings, Inc. at 16.34 and Cavco Industries, Inc. at 18.75. Additionally, Green Brick's EV to EBITDA stands at 5.69, which is competitive compared to the industry average, suggesting strong operational efficiency.
Notable ratios for Green Brick include a PEG ratio of 0.24 and a ROCE of 26.03%, both of which reflect robust growth potential and effective capital management. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 12.78% compared to the index's 2.44%, reinforcing the narrative of its undervaluation in the current market context.