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TOL Valuation

Toll Brothers Inc
$
131.710
+1.21(0.927%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

TOL Relative Valuation

TOL'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, TOL is overvalued; if below, it's undervalued.
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Historical Valuation

Toll Brothers Inc (TOL) is now in the Fair zone, suggesting that its current forward PE ratio of 9.43 is considered Fairly compared with the five-year average of 7.48. The fair price of Toll Brothers Inc (TOL) is between 100.38 to 146.26 according to relative valuation methord.
Relative Value
Fair Zone
100.38-146.26
Current Price:130.50
Fair
9.43
PE
1Y
3Y
5Y
Trailing
Forward
7.72
EV/EBITDA
Toll Brothers Inc. (TOL) has a current EV/EBITDA of 7.72. The 5-year average EV/EBITDA is 6.31. The thresholds are as follows: Strongly Undervalued below 3.34, Undervalued between 3.34 and 4.82, Fairly Valued between 7.79 and 4.82, Overvalued between 7.79 and 9.27, and Strongly Overvalued above 9.27. The current Forward EV/EBITDA of 7.72 falls within the Historic Trend Line -Fairly Valued range.
8.71
EV/EBIT
Toll Brothers Inc. (TOL) has a current EV/EBIT of 8.71. The 5-year average EV/EBIT is 7.81. The thresholds are as follows: Strongly Undervalued below 3.65, Undervalued between 3.65 and 5.73, Fairly Valued between 9.89 and 5.73, Overvalued between 9.89 and 11.97, and Strongly Overvalued above 11.97. The current Forward EV/EBIT of 8.71 falls within the Historic Trend Line -Fairly Valued range.
1.20
PS
Toll Brothers Inc. (TOL) has a current PS of 1.20. The 5-year average PS is 0.87. The thresholds are as follows: Strongly Undervalued below 0.36, Undervalued between 0.36 and 0.61, Fairly Valued between 1.13 and 0.61, Overvalued between 1.13 and 1.38, and Strongly Overvalued above 1.38. The current Forward PS of 1.20 falls within the Overvalued range.
11.55
P/OCF
Toll Brothers Inc. (TOL) has a current P/OCF of 11.55. The 5-year average P/OCF is 9.54. The thresholds are as follows: Strongly Undervalued below 2.33, Undervalued between 2.33 and 5.94, Fairly Valued between 13.14 and 5.94, Overvalued between 13.14 and 16.74, and Strongly Overvalued above 16.74. The current Forward P/OCF of 11.55 falls within the Historic Trend Line -Fairly Valued range.
8.87
P/FCF
Toll Brothers Inc. (TOL) has a current P/FCF of 8.87. The 5-year average P/FCF is 2.13. The thresholds are as follows: Strongly Undervalued below -46.84, Undervalued between -46.84 and -22.36, Fairly Valued between 26.61 and -22.36, Overvalued between 26.61 and 51.09, and Strongly Overvalued above 51.09. The current Forward P/FCF of 8.87 falls within the Historic Trend Line -Fairly Valued range.
Toll Brothers Inc (TOL) has a current Price-to-Book (P/B) ratio of 1.61. Compared to its 3-year average P/B ratio of 1.41 , the current P/B ratio is approximately 14.11% higher. Relative to its 5-year average P/B ratio of 1.37, the current P/B ratio is about 17.84% higher. Toll Brothers Inc (TOL) has a Forward Free Cash Flow (FCF) yield of approximately 5.65%. Compared to its 3-year average FCF yield of 11.28%, the current FCF yield is approximately -49.95% lower. Relative to its 5-year average FCF yield of 12.97% , the current FCF yield is about -56.49% lower.
1.61
P/B
Median3y
1.41
Median5y
1.37
5.65
FCF Yield
Median3y
11.28
Median5y
12.97
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Competitors Valuation Multiple

The average P/S ratio for TOL's competitors is 1.21, providing a benchmark for relative valuation. Toll Brothers Inc Corp (TOL) exhibits a P/S ratio of 1.20, which is -1.23% above the industry average. Given its robust revenue growth of -3.47%, this premium appears unsustainable.
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Performance Decomposition

1Y
3Y
5Y
Market capitalization of TOL decreased by 9.28% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.17 to 9.67.
The secondary factor is the Revenue Growth, contributed -3.47%to the performance.
Overall, the performance of TOL in the past 1 year is driven by P/E Change. Which is more unsustainable.
-3.47%
2.84B → 2.74B
Revenue Growth
+
-24.16%
16.97 → 12.87
Margin Expansion
+
18.35%
8.17 → 9.67
P/E Change
=
-9.28%
143.85 → 130.50
Mkt Cap Growth

FAQ

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Is Toll Brothers Inc (TOL) currently overvalued or undervalued?

Toll Brothers Inc (TOL) is now in the Fair zone, suggesting that its current forward PE ratio of 9.43 is considered Fairly compared with the five-year average of 7.48. The fair price of Toll Brothers Inc (TOL) is between 100.38 to 146.26 according to relative valuation methord.
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What is Toll Brothers Inc (TOL) fair value?

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How does TOL's valuation metrics compare to the industry average?

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What is the current P/B ratio for Toll Brothers Inc (TOL) as of Aug 18 2025?

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What is the current FCF Yield for Toll Brothers Inc (TOL) as of Aug 18 2025?

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What is the current Forward P/E ratio for Toll Brothers Inc (TOL) as of Aug 18 2025?

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What is the current Forward P/S ratio for Toll Brothers Inc (TOL) as of Aug 18 2025?