Toll Brothers Valuation

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

TOL * (MX$1980) is trading above our estimate of [[fair value]] (MX$911.1)

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

Valuation Score

1/6

Valuation Score 1/6

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 TOL * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TOL * (MX$1980) is trading above our estimate of fair value (MX$911.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TOL *. This is calculated by dividing TOL *'s market cap by their current earnings.
What is TOL *'s PE Ratio?
PE Ratio	8.4x
Earnings	US$1.58b
Market Cap	US$13.27b

TOL * 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	1.5x
Enterprise Value/EBITDA	7.1x
PEG Ratio	-9.3x

Price to Earnings Ratio vs Peers

How does TOL *'s PE Ratio compare to its peers?

The above table shows the PE ratio for TOL * 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	8.5x
VINTE * Vinte Viviendas Integrales. de	17.5x	17.2%	Mex$7.5b
ARA * Consorcio ARA S. A. B. de C. V	6.3x	10.2%	Mex$4.0b
JAVER * Servicios Corporativos Javer. de	4.5x	13.3%	Mex$3.3b
CADU A Corpovael. de	5.7x	22.1%	Mex$1.1b
TOL * Toll Brothers	8.4x	-0.9%	Mex$13.3b

Price-To-Earnings vs Peers: TOL * is expensive based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (7.8x).

Price to Earnings Ratio vs Industry

How does TOL *'s PE Ratio compare vs other companies in the South American Consumer Durables Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TOL * is good value based on its Price-To-Earnings Ratio (8.4x) compared to the Global Consumer Durables industry average (14.9x).

Price to Earnings Ratio vs Fair Ratio

What is TOL *'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.

TOL * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TOL *'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.