Is Lennar Corp. overvalued or undervalued?

As of 18 December 2024, Lennar Corp. has moved from a very attractive to a fair valuation grade. The company is currently fairly valued. Key ratios include a P/E ratio of 8, an EV to EBITDA of 6.96, and a Price to Book Value of 1.40. In comparison, peers such as D.R. Horton, Inc. have a P/E ratio of 9.31 and an EV to EBITDA of 8.12, while NVR, Inc. shows a significantly higher P/E ratio of 90.75, indicating that Lennar is more conservatively valued relative to its peers.
Despite a recent uptick in stock price, with a 1-week return of 1.04% compared to a slight decline in the S&P 500, the year-to-date performance shows a decline of 15.58% against a 2.44% gain for the index. This suggests that while the stock may be stabilizing, it remains under pressure compared to broader market trends. Overall, Lennar Corp. appears to be fairly valued in the current market context.