Is Lennar Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Lennar Corp. has moved from expensive to very expensive. This indicates that the company is overvalued. 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, all of which suggest that Lennar Corp. is trading at a premium compared to its peers. For instance, PulteGroup, Inc. has a P/E of 10.17 and an EV to EBITDA of 7.94, indicating that Lennar is significantly more expensive relative to its industry counterparts.
In terms of performance, Lennar's stock has underperformed compared to the S&P 500, with a one-year return of -26.62% versus the S&P 500's 17.14%. This underperformance, coupled with the very expensive valuation grade, reinforces the conclusion that Lennar Corp. is overvalued in the current market context.