Is Tri Pointe Homes, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Tri Pointe Homes, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 6, which is significantly lower than 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, while its peers average higher, reinforcing the notion of overvaluation.
In comparison to the S&P 500, Tri Pointe Homes has underperformed in the year-to-date period with a return of -11.86% versus the index's 13.30%. This trend is further reflected in the one-year return of -30.84% against the S&P 500's 14.08%, highlighting the company's struggles in a broader market context. Overall, the combination of low valuation ratios and poor stock performance suggests that Tri Pointe Homes, Inc. is overvalued.