We’ve recently updated our valuation analysis.

Green Brick Partners Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GRBK 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/Revenue0.8x
Enterprise Value/EBITDA4.3x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

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

GRBK PE Ratio vs Peers
The above table shows the PE ratio for GRBK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3.9x
MHO M/I Homes
2.5x5.8%US$1.1b
CCS Century Communities
2.5x-1.1%US$1.4b
DFH Dream Finders Homes
5.8x11.9%US$995.3m
LGIH LGI Homes
4.8x-7.6%US$2.0b
GRBK Green Brick Partners
3.8x-12.9%US$1.0b

Price-To-Earnings vs Peers: GRBK is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (3.9x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: GRBK is good value based on its Price-To-Earnings Ratio (3.8x) compared to the US Consumer Durables industry average (5.9x)


Price to Earnings Ratio vs Fair Ratio

What is GRBK'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.

GRBK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.8x
Fair PE Ratio7.2x

Price-To-Earnings vs Fair Ratio: GRBK is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (7.2x).


Share Price vs Fair Value

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

Below Fair Value: GRBK ($22.54) is trading below our estimate of fair value ($337.83)

Significantly Below Fair Value: GRBK is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Target price is less than 20% higher than the current share price.


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