Is Tri Pointe Homes, Inc. overvalued or undervalued?

As of 17 October 2025, Tri Pointe Homes, Inc. has moved from fair to expensive in its valuation grade. The company is currently overvalued based on its P/E ratio of 6, which is significantly lower than its peers, such as Toll Brothers, Inc. with a P/E of 11.10 and Taylor Morrison Home Corp. at 10.67. Additionally, Tri Pointe's EV to EBITDA ratio stands at 5.05, compared to the industry average, indicating a premium valuation relative to its earnings potential.
The company's PEG ratio of 0.41 suggests that it may be overvalued in relation to its growth prospects, especially when compared to peers like M.D.C. Holdings, Inc., which has a PEG ratio of 0.00. Furthermore, Tri Pointe's recent stock performance shows a stark contrast to the S&P 500, with a year-to-date return of -11.86% compared to the index's 13.30%, reinforcing the notion that the stock may not be a favorable investment at its current price.