We’ve recently updated our valuation analysis.

Lennar Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 LEN?

Other financial metrics that can be useful for relative valuation.

LEN 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/Revenue1x
Enterprise Value/EBITDA4.8x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.7x
DHI D.R. Horton
6.2x2.3%US$35.3b
NVR NVR
10.1x-20.6%US$17.4b
PHM PulteGroup
5.2x-28.9%US$13.7b
TOL Toll Brothers
5.3x-13.9%US$6.8b
LEN Lennar
6.9x-24.5%US$30.6b

Price-To-Earnings vs Peers: LEN is expensive based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (6.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-4.6%
n/an/an/a

Price-To-Earnings vs Industry: LEN is expensive based on its Price-To-Earnings Ratio (6.9x) compared to the US Consumer Durables industry average (6.8x)


Price to Earnings Ratio vs Fair Ratio

What is LEN'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.

LEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.9x
Fair PE Ratio8.5x

Price-To-Earnings vs Fair Ratio: LEN is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (8.5x).


Share Price vs Fair Value

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

Below Fair Value: LEN ($108.08) is trading below our estimate of fair value ($305.03)

Significantly Below Fair Value: LEN 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?

The above table shows the analyst LEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$108.08
US$107.94
-0.1%
14.8%US$152.00US$76.00n/a18
Jan ’24US$90.50
US$104.59
+15.6%
11.4%US$120.00US$79.00n/a17
Dec ’23US$88.16
US$97.24
+10.3%
15.5%US$133.00US$72.00n/a17
Nov ’23US$81.62
US$95.18
+16.6%
16.9%US$133.00US$72.00n/a17
Oct ’23US$74.55
US$96.83
+29.9%
18.7%US$133.00US$72.00n/a18
Sep ’23US$77.49
US$93.58
+20.8%
22.0%US$133.00US$60.00n/a19
Aug ’23US$85.23
US$93.58
+9.8%
22.0%US$133.00US$60.00n/a19
Jul ’23US$74.60
US$93.74
+25.7%
21.9%US$133.00US$60.00n/a19
Jun ’23US$79.63
US$112.37
+41.1%
19.9%US$154.00US$75.00n/a19
May ’23US$76.49
US$112.42
+47.0%
19.9%US$154.00US$75.00n/a19
Apr ’23US$82.33
US$117.72
+43.0%
16.5%US$154.00US$75.00n/a18
Mar ’23US$90.34
US$128.44
+42.2%
12.2%US$163.00US$86.00n/a18
Feb ’23US$95.69
US$128.28
+34.1%
12.3%US$163.00US$86.00US$104.6918
Jan ’23US$116.16
US$131.53
+13.2%
11.5%US$179.00US$115.00US$90.5015
Dec ’22US$108.57
US$121.13
+11.6%
13.5%US$166.00US$100.00US$88.1615
Nov ’22US$101.13
US$118.93
+17.6%
13.8%US$166.00US$100.00US$81.6214
Oct ’22US$93.70
US$120.43
+28.5%
14.2%US$166.00US$100.00US$74.5514
Sep ’22US$108.59
US$117.57
+8.3%
14.1%US$160.00US$98.00US$77.4914
Aug ’22US$105.15
US$117.57
+11.8%
14.1%US$160.00US$98.00US$85.2314
Jul ’22US$101.78
US$116.86
+14.8%
14.3%US$160.00US$98.00US$74.6014
Jun ’22US$98.50
US$109.29
+10.9%
7.1%US$121.00US$97.00US$79.6314
May ’22US$103.60
US$108.73
+5.0%
6.7%US$120.00US$97.00US$76.4915
Apr ’22US$103.43
US$105.94
+2.4%
9.3%US$120.00US$83.00US$82.3316
Mar ’22US$82.60
US$94.68
+14.6%
8.0%US$112.00US$83.00US$90.3419
Feb ’22US$84.21
US$93.95
+11.6%
8.0%US$112.00US$83.00US$95.6919

Analyst Forecast: Target price is lower than the current share price.


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