Using the industry peer median P/E multiple (trailing + forward), PulteGroup, Inc. (PHM) has a fair value of $237.15 based on 5 comparable companies in the Residential Construction industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| PulteGroup, Inc.PHM | 23,414 | 10.6x | 8.7x |
| Ulta Beauty, Inc.ULTA | 23,439 | 20.4x | 18.3x |
| Darden Restaurants, Inc.DRI | 23,185 | 22.5x | 18.8x |
| Lennar CorporationLEN | 23,011 | 11.4x | 6.6x |
| Williams-Sonoma, Inc.WSM | 21,539 | 20.4x | 21.4x |
| NVR, Inc.NVR | 18,276 | 15.0x | 13.2x |
| Industry Median | 20.4x | 18.3x | |
| (*) Profit after tax | 2,219 | 2,697 | |
| Equity Value | 45,236 | 49,404 | |
| (/) Outstanding shares | 200 | 200 | |
| Fair Price | $227 | $248 | |
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.