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 appears overvalued based on its current metrics, with a P/E ratio of 8, a Price to Book Value of 1.40, and an EV to EBITDA ratio of 6.96. In comparison, PulteGroup, Inc. has a fair valuation with a P/E of 10.17, while NVR, Inc. is categorized as expensive with a P/E of 115.62, highlighting Lennar's relatively lower valuation metrics.
Despite a recent one-week stock return of 5.94%, which outperformed the S&P 500's return of 1.70%, the longer-term performance shows that Lennar has underperformed over the past year with a return of -29.41% compared to the S&P 500's 14.08%. This trend reinforces the conclusion that Lennar Corp. is overvalued in the current market environment.