Is United Homes Group, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for United Homes Group, Inc. has moved from very attractive to attractive. The company appears to be overvalued at this time. Key ratios include a P/E ratio of 57, an EV to EBITDA of 26.15, and a Price to Book Value of 2.41, which are significantly higher than its peers. For instance, Beazer Homes USA, Inc. has a P/E of 6.82 and an EV to EBITDA of 13.54, indicating that United Homes is trading at a premium compared to its competitors.
In comparison to other companies in the sector, Hovnanian Enterprises, Inc. shows a more favorable valuation with a P/E of 3.15 and an EV to EBITDA of 5.36. Additionally, the company's recent stock performance has been disappointing, with a year-to-date return of -22.46%, contrasting sharply with the S&P 500's gain of 2.44%. This further reinforces the view that United Homes Group, Inc. is currently overvalued.