Is Tri Pointe Homes, Inc. overvalued or undervalued?

As of 13 August 2025, Tri Pointe Homes, Inc. has moved from an expensive to a very expensive valuation grade. The company is overvalued based on its current metrics, including a P/E ratio of 6, which is significantly lower than the peer average of 8.73, an EV to EBITDA ratio of 5.05 compared to the peer average of 9.45, and a PEG ratio of 0.41, indicating potential growth is not being reflected in its valuation.
In comparison to its peers, Toll Brothers, Inc. has a fair valuation with a P/E of 11.10, while Taylor Morrison Home Corp. is considered attractive with a P/E of 10.67. This suggests that Tri Pointe Homes, Inc. is trading at a discount relative to its more favorably valued peers. Furthermore, the company's stock has underperformed against the S&P 500 over the past year, with a return of -21.54% compared to the benchmark's 17.14%, reinforcing the notion of overvaluation.