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 its valuation outlook. Despite this change, the company remains overvalued based on its high valuation ratios, including a P/E ratio of 92, an EV to EBITDA ratio of 83.54, and a Price to Book Value of 35.93. In comparison, peers such as Lennar Corp. and PulteGroup, Inc. have significantly lower P/E ratios of 12.43 and 10.17, respectively, highlighting NVR's premium valuation.
The stock has shown mixed performance against the S&P 500, with a year-to-date return of -6.60% compared to the index's 13.30%. Over a three-year period, NVR has outperformed the S&P 500 with a return of 89.33% versus 81.19%, but its one-year return of -21.84% suggests recent struggles. Overall, NVR, Inc. appears to be overvalued given its high valuation ratios and recent stock performance trends.