Is Lennar Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lennar Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its valuation metrics. Key ratios include a P/E ratio of 8, a Price to Book Value of 1.40, and an EV to EBITDA of 6.96, all of which suggest that Lennar Corp. is trading at a premium compared to its peers.
In comparison, PulteGroup, Inc. is fairly valued with a P/E ratio of 10.17 and an EV to EBITDA of 7.94, while NVR, Inc. is considered expensive with a P/E ratio of 115.62. This highlights that Lennar Corp. is not only overvalued relative to its own historical metrics but also compared to its industry peers. Additionally, while Lennar Corp. has outperformed the S&P 500 in the last week with a return of 5.94% versus 1.70%, its longer-term performance has lagged significantly, with a 1-year return of -29.41% compared to the S&P 500's 14.08%.