Is Taylor Morrison Home Corp. overvalued or undervalued?

As of 3 September 2025, the valuation grade for Taylor Morrison Home Corp. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 9, a Price to Book Value of 1.31, and an EV to EBITDA of 7.37, which suggest that while the company is competitively priced, it is not significantly undervalued compared to its peers.
In comparison to its peers, Taylor Morrison has a lower P/E ratio than Toll Brothers, Inc. at 11.10 and M.D.C. Holdings, Inc. at 16.34, but is slightly above Meritage Homes Corp. at 9.16. Notably, the company has demonstrated strong returns over the long term, with a 3-year return of 186.78%, significantly outperforming the S&P 500's 70.41% during the same period. However, its recent 1-year return of -0.72% compared to the S&P 500's 17.14% indicates a need for caution.