Is Hovnanian Enterprises, Inc. overvalued or undervalued?

As of 20 May 2025, Hovnanian Enterprises, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be undervalued based on its current metrics, with a P/E ratio of 3, a Price to Book Value of 0.72, and an EV to EBITDA of 5.09. In comparison, Beazer Homes USA, Inc. is considered expensive with a P/E ratio of 6.82, highlighting Hovnanian's relative value in the market.
Despite a recent decline in stock performance year-to-date at -22.75%, Hovnanian's return over the past three years has been impressive at 127.74%, significantly outperforming the S&P 500's 58.74% return in the same period. This suggests that while the company may currently be undervalued, it has demonstrated strong growth potential in the past.