Is Legacy Housing Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Legacy Housing Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 9, a price-to-book value of 1.07, and an EV to EBITDA ratio of 8.84. In comparison, its peer Beazer Homes USA, Inc. has a higher P/E of 11.43, suggesting that Legacy may be more reasonably priced within its industry.
Despite its fair valuation, Legacy Housing Corp. has underperformed against the S&P 500 in several timeframes, with a year-to-date return of -5.23% compared to the S&P 500's 13.30%. Over the past three years, Legacy's return of 39.81% falls significantly short of the S&P 500's 81.19%, reinforcing the notion that while the stock is fairly valued, it may not be the best investment choice at this time.