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Lennar Corp (LEN) Stock: How Does it Score on Valuation Metrics?

Friday, September 29, 2023 03:28 PM | InvestorsObserver Analysts

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Lennar Corp (LEN) Stock: How Does it Score on Valuation Metrics?

Lennar Corp (LEN) receives a strong valuation score of 74 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. LEN holds a better value than 74% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 74
LEN gets a 74 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LEN!

Metrics Analysis

LEN has a trailing twelve month Price to Earnings (PE) ratio of 8.48. The historical average of roughly 15 shows a good value for LEN stock as investors are paying lower share prices relative to the company's earnings. LEN's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 14.61 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
LEN currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.43. The market is currently overvaluing LEN in relation to its projected growth due to the PEG ratio being above the fair market value of 1. LEN's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.


LEN' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. LEN's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Lennar Corp (LEN) stock.

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