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 current P/E ratio of 6, which is significantly lower than the industry average, and an EV to EBITDA ratio of 5.05, which also suggests a premium compared to peers. Additionally, the PEG ratio stands at 0.41, indicating growth potential is not being adequately reflected in the stock price.
In comparison to its peers, Toll Brothers, Inc. has a P/E of 11.10 and an EV to EBITDA of 9.45, while Taylor Morrison Home Corp. boasts a P/E of 10.67 and an EV to EBITDA of 8.98, both reflecting more favorable valuations. Recent performance shows that Tri Pointe Homes has underperformed against the S&P 500, with a year-to-date return of -11.86% compared to the index's 13.30%, reinforcing the notion of overvaluation.