Using the industry peer median P/E multiple (trailing + forward), Lennar Corporation (LEN) has a fair value of $136.23 based on 6 comparable companies in the Residential Construction industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Lennar CorporationLEN | 23,423 | 11.4x | 6.6x |
| D.R. Horton, Inc.DHI | 39,870 | 11.8x | 9.4x |
| Carnival Corporation & plcCCL | 35,155 | 12.6x | 10.3x |
| Rollins, Inc.ROL | 25,455 | 48.5x | 43.1x |
| Tractor Supply CompanyTSCO | 24,083 | 22.2x | 21.0x |
| PulteGroup, Inc.PHM | 22,574 | 10.6x | 8.7x |
| NVR, Inc.NVR | 18,276 | 15.0x | 13.2x |
| Industry Median | 13.8x | 11.7x | |
| (*) Profit after tax | 2,058 | 3,567 | |
| Equity Value | 28,350 | 41,874 | |
| (/) Outstanding shares | 258 | 258 | |
| Fair Price | $110 | $162 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.