Is Green Brick Partners, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Green Brick Partners, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 6, a PEG ratio of 0.24, and an EV to EBITDA ratio of 5.69, which are significantly lower than its peers. For instance, Meritage Homes Corp. has a P/E of 9.16, while M.D.C. Holdings, Inc. stands at 16.34, highlighting Green Brick's relative attractiveness in the market.
In terms of performance, Green Brick has demonstrated impressive returns over the long term, with a 3-year return of 215.83% compared to the S&P 500's 70.41%, and a 5-year return of 301.99% versus the S&P 500's 96.61%. This suggests that the stock has outperformed the benchmark significantly over these periods, reinforcing the notion of its undervaluation.