Is Tri Pointe Homes, Inc. overvalued or undervalued?

As of 9 May 2025, Tri Pointe Homes, Inc. has moved from a fair to an attractive valuation grade. The company appears to be undervalued, supported by a P/E ratio of 6, a Price to Book Value of 0.82, and an EV to EBITDA ratio of 5.05. In comparison, M.D.C. Holdings, Inc. has a P/E of 16.34, indicating that Tri Pointe Homes is trading at a significant discount relative to its peers, while Skyline Champion Corp. is considered expensive with a P/E of 17.14.
The company's ROCE stands at 15.51% and ROE at 12.84%, further demonstrating its operational efficiency and profitability. Despite a challenging year-to-date return of -12.74% compared to the S&P 500's 2.44%, the long-term performance of Tri Pointe Homes shows a 3-year return of 91.06%, suggesting potential for recovery and growth. Overall, the current valuation metrics and peer comparisons indicate that Tri Pointe Homes, Inc. is undervalued in the market.