Is NVR, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for NVR, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting overvaluation. The company appears overvalued with a P/E ratio of 92, significantly higher than its peers, such as Lennar Corp. at 12.43 and PulteGroup, Inc. at 10.17. Additionally, NVR's EV to EBITDA stands at 83.54, which also exceeds the industry norms, further supporting the overvaluation verdict.
In comparison to the S&P 500, NVR, Inc. has shown mixed performance, with a 1-week return of 2.53% outpacing the index's 1.70%, but a year-to-date return of -6.60% lagging behind the S&P 500's 13.30%. Overall, the high valuation ratios and the performance against peers suggest that NVR, Inc. is overvalued in the current market context.