LEN Relative Valuation
LEN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LEN is overvalued; if below, it's undervalued.
Historical Valuation
Lennar Corp (LEN) is now in the Overvalued zone, suggesting that its current forward PE ratio of 14.67 is considered Overvalued compared with the five-year average of 9.04. The fair price of Lennar Corp (LEN) is between 67.03 to 106.04 according to relative valuation methord. Compared to the current price of 123.91 USD , Lennar Corp is Overvalued By 16.85%.
Relative Value
Fair Zone
67.03-106.04
Current Price：123.91
16.85%
Overvalued
14.67
PE
1Y
3Y
5Y
Trailing
Forward
9.32
EV/EBITDA
Lennar Corp. (LEN) has a current EV/EBITDA of 9.32. The 5-year average EV/EBITDA is 6.38. The thresholds are as follows: Strongly Undervalued below 3.19, Undervalued between 3.19 and 4.78, Fairly Valued between 7.98 and 4.78, Overvalued between 7.98 and 9.57, and Strongly Overvalued above 9.57. The current Forward EV/EBITDA of 9.32 falls within the Overvalued range.
9.69
EV/EBIT
Lennar Corp. (LEN) has a current EV/EBIT of 9.69. The 5-year average EV/EBIT is 6.59. The thresholds are as follows: Strongly Undervalued below 3.23, Undervalued between 3.23 and 4.91, Fairly Valued between 8.26 and 4.91, Overvalued between 8.26 and 9.94, and Strongly Overvalued above 9.94. The current Forward EV/EBIT of 9.69 falls within the Overvalued range.
0.88
PS
Lennar Corp. (LEN) has a current PS of 0.88. The 5-year average PS is 0.97. The thresholds are as follows: Strongly Undervalued below 0.59, Undervalued between 0.59 and 0.78, Fairly Valued between 1.16 and 0.78, Overvalued between 1.16 and 1.35, and Strongly Overvalued above 1.35. The current Forward PS of 0.88 falls within the Historic Trend Line -Fairly Valued range.
8.13
P/OCF
Lennar Corp. (LEN) has a current P/OCF of 8.13. The 5-year average P/OCF is 10.35. The thresholds are as follows: Strongly Undervalued below 4.31, Undervalued between 4.31 and 7.33, Fairly Valued between 13.37 and 7.33, Overvalued between 13.37 and 16.39, and Strongly Overvalued above 16.39. The current Forward P/OCF of 8.13 falls within the Historic Trend Line -Fairly Valued range.
10.00
P/FCF
Lennar Corp. (LEN) has a current P/FCF of 10.00. The 5-year average P/FCF is 18.22. The thresholds are as follows: Strongly Undervalued below -52.15, Undervalued between -52.15 and -16.97, Fairly Valued between 53.40 and -16.97, Overvalued between 53.40 and 88.58, and Strongly Overvalued above 88.58. The current Forward P/FCF of 10.00 falls within the Historic Trend Line -Fairly Valued range.
Lennar Corp (LEN) has a current Price-to-Book (P/B) ratio of 1.40. Compared to its 3-year average P/B ratio of 1.43 , the current P/B ratio is approximately -2.02% higher. Relative to its 5-year average P/B ratio of 1.40, the current P/B ratio is about 0.11% higher. Lennar Corp (LEN) has a Forward Free Cash Flow (FCF) yield of approximately -2.35%. Compared to its 3-year average FCF yield of 8.67%, the current FCF yield is approximately -127.04% lower. Relative to its 5-year average FCF yield of 9.33% , the current FCF yield is about -125.15% lower.
1.40
P/B
Median3y
1.43
Median5y
1.40
-2.35
FCF Yield
Median3y
8.67
Median5y
9.33
Competitors Valuation Multiple
The average P/S ratio for LEN's competitors is 1.36, providing a benchmark for relative valuation. Lennar Corp Corp (LEN) exhibits a P/S ratio of 0.88, which is -35.18% above the industry average. Given its robust revenue growth of -6.43%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LEN decreased by 6.14% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.34 to 12.20.
The secondary factor is the Revenue Growth, contributed -6.43%to the performance.
Overall, the performance of LEN in the past 1 year is driven by P/E Change. Which is more unsustainable.
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