Hovnanian Enterprises Valuation

Q: What is the Fair Price of HO3A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HO3A (€161) is trading above our estimate of [[fair value]] (€50.9)

Is HO3A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HO3A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HO3A (€161) is trading above our estimate of fair value (€50.9)

Significantly Below Fair Value: HO3A is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HO3A?

Key metric: As HO3A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HO3A. This is calculated by dividing HO3A's market cap by their current earnings.
What is HO3A's PE Ratio?
PE Ratio	4.6x
Earnings	US$221.34m
Market Cap	US$1.02b

HO3A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	7.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HO3A's PE Ratio compare to its peers?

The above table shows the PE ratio for HO3A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.4x
EIN3 Einhell Germany	13x	9.9%	€724.7m
SUR Surteco Group	31.5x	22.8%	€276.0m
LEI Leifheit	20.1x	15.4%	€149.0m
BOSS Hugo Boss	13x	13.2%	€2.8b
HO3A Hovnanian Enterprises	4.6x	n/a	€1.0b

Price-To-Earnings vs Peers: HO3A is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does HO3A's PE Ratio compare vs other companies in the European Consumer Durables Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HO3A is good value based on its Price-To-Earnings Ratio (4.6x) compared to the European Consumer Durables industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is HO3A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HO3A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HO3A's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.