Using the industry peer median P/E multiple (trailing + forward), NVR, Inc. (NVR) has a fair value of $4,644.38 based on 3 comparable companies in the Residential Construction industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| NVR, Inc.NVR | 20,126 | 15.0x | 13.2x |
| D.R. Horton, Inc.DHI | 39,870 | 11.8x | 9.4x |
| Lennar CorporationLEN | 23,011 | 11.4x | 6.6x |
| PulteGroup, Inc.PHM | 22,574 | 10.6x | 8.7x |
| Industry Median | 11.4x | 8.7x | |
| (*) Profit after tax | 1,340 | 1,524 | |
| Equity Value | 15,260 | 13,247 | |
| (/) Outstanding shares | 3 | 3 | |
| Fair Price | $4972 | $4316 | |
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.