Based on the provided data, I'll analyze if PHM is overvalued through multiple perspectives.
Valuation Analysis
PHM's Q4 2024 P/E ratio of 7.41 and EV/EBITDA of 5.77 are significantly below industry averages, suggesting the stock is undervalued by traditional metrics.
Financial Performance
The company delivered strong Q4 2024 results with:
- Revenue of $4.92 billion
- Net income of $913 million
- Gross margin of 27.47%
- ROE of 27.40%
- Current ratio of 6.35
Recent Market Performance
The stock fell 3.76% to $105.87 on February 7, 2025, amid broader market weakness. However, it has shown resilience compared to competitors despite recent losses.
Growth Outlook
PulteGroup targets 31,000 home closings in 2025 with gross margins projected between 26.5-27%, demonstrating solid operational expectations despite market challenges.
Conclusion
PHM is not overvalued based on its strong fundamentals, healthy margins, robust balance sheet, and reasonable valuation multiples relative to earnings growth potential.