Is PulteGroup, Inc. overvalued or undervalued?

As of 22 July 2025, PulteGroup, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its metrics, with a P/E ratio of 7, an EV to EBITDA of 5.43, and a PEG ratio of 0.52. In comparison, its peers show higher valuations, with Lennar Corp. at a P/E of 12.43 and NVR, Inc. significantly higher at 115.62, indicating that PulteGroup is positioned more favorably relative to its competitors.
Despite the recent valuation downgrade, PulteGroup has demonstrated strong performance with a year-to-date return of 23.14%, significantly outperforming the S&P 500's return of 12.22% over the same period. However, the one-year return of -4.89% compared to the S&P 500's 17.14% suggests some volatility in the stock's performance. Overall, the company appears to be fairly valued in the current market context.