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 overvalued, as evidenced by its P/E ratio of 8, which is notably lower than the peer average of 12.43 for companies like PulteGroup, Inc. and NVR, Inc. Additionally, Lennar's EV to EBITDA ratio stands at 6.96, compared to PulteGroup's 7.94, further emphasizing its overvaluation relative to peers. The Price to Book Value of 1.40 also suggests that investors are paying a premium for the company's assets.
In terms of stock performance, Lennar Corp. has underperformed against the S&P 500 over the past year, with a return of -29.41% compared to the index's 14.08%. While the company showed strong returns over a three-year period at 75.78%, it still lags behind the S&P 500's 81.19% return, highlighting the challenges it faces in maintaining investor confidence amidst its high valuation metrics.