Is PulteGroup, Inc. overvalued or undervalued?

As of 22 April 2025, PulteGroup, Inc. has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 7, a Price to Book Value of 1.63, and an EV to EBITDA of 5.43. These ratios indicate a favorable valuation relative to its peers, particularly when compared to Toll Brothers, Inc. with a P/E of 7.93 and Taylor Morrison Home Corp. with a P/E of 8.55.
In addition to its strong valuation metrics, PulteGroup boasts a PEG ratio of 0.52 and a robust ROCE of 28.64%, further supporting its undervalued status. While the company has underperformed the S&P 500 on a year-to-date basis, its three-year return of 163.97% significantly outpaces the index, suggesting strong long-term growth potential.