Is Taylor Morrison Home Corp. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Taylor Morrison Home Corp. has moved from attractive to very attractive, indicating a strong improvement in its valuation metrics. The company is currently considered undervalued, with a P/E ratio of 9, significantly lower than the industry average. Key ratios include a Price to Book Value of 1.31 and an EV to EBITDA of 7.37, which further support this assessment.
In comparison to its peers, Taylor Morrison outperforms PulteGroup, Inc. (P/E of 6.72) and Toll Brothers, Inc. (P/E of 7.93), showcasing its competitive positioning in the market. The PEG ratio of 0.36 also highlights its growth potential relative to its valuation. Notably, the company's stock has delivered a 10.03% return over the past year, closely aligning with the S&P 500's 10.26% return, reinforcing its attractiveness as an investment.