Is Tri Pointe Homes, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Tri Pointe Homes, Inc. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 6, while the industry average is notably higher, and the EV to EBITDA ratio is 5.05, which is also below that of its peers.
In comparison to its peers, Tri Pointe Homes, Inc. has a P/E ratio of 8.73, which is lower than Toll Brothers, Inc. at 11.10, and Taylor Morrison Home Corp. at 10.67, both of which are considered fairly valued or very attractive. Additionally, the PEG ratio of 0.41 suggests that the company may not be growing at a rate that justifies its current valuation. Notably, while Tri Pointe Homes has outperformed the S&P 500 over the last three years with a return of 120.84% compared to 82.57%, its one-year return of -22.71% contrasts sharply with the S&P 500's 17.82%, reinforcing the notion of overvaluation.