Is NVR, Inc. overvalued or undervalued?

As of 27 June 2025, the valuation grade for NVR, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 92, significantly higher than its peers, such as D.R. Horton, Inc. with a P/E of 9.31 and Lennar Corp. at 9.22. Additionally, NVR's EV to EBITDA ratio is 83.54, compared to the industry averages that suggest a much lower valuation.
With a PEG ratio of 92.36 and a Price to Book Value of 35.93, NVR, Inc. appears to be trading at a premium relative to its peers and the broader market. The company's return on equity (ROE) is impressive at 38.90%, but this does not justify its high valuation metrics. Recent stock performance shows a decline of 9.82% year-to-date, contrasting with a 4.96% gain in the S&P 500, further reinforcing the notion that NVR, Inc. is overvalued in the current market environment.