Lennar Corporation (LEN) Stock Valuation — PE Analysis
Residential Construction · NYSE
Current Price
$90.30
PE Ratio (TTM)
13.5x
Intrinsic Value
$54.32
-66.2% margin of safety
COMPETITIVE MOAT
↑Scale and Land Holdings
Lennar's vast scale allows for significant purchasing power and operational efficiencies. Extensive land holdings provide a crucial pipeline for future development, a key advantage in a supply-constrained market.
↑Diversified Product Offerings
The company builds a range of homes from entry-level to luxury, catering to a broad customer base. This diversification mitigates risk by not being overly reliant on a single market segment.
↑Financial Strength and Access to Capital
Lennar's strong balance sheet and established relationships provide access to capital for land acquisition and construction. This is vital for navigating market cycles and seizing opportunities.
INVESTMENT RISKS
↓Interest Rate Sensitivity
Rising or persistently high interest rates directly impact affordability for homebuyers. This can significantly slow demand and pressure sales volumes and pricing.
↓Regulatory and Permitting Hurdles
Navigating complex and varying local zoning laws and permitting processes can cause project delays and increase costs. This is a constant challenge for homebuilders.
↓Labor and Material Shortages
The construction industry faces ongoing challenges with skilled labor availability and fluctuating material costs. These can impact project timelines and profitability.
Base case
LEN base case PE valuation
A base case PE valuation for LEN estimates a fair value of about $54.32 per share, against a current price of $90.3. The model assumes -9.6% annual earnings growth, a 14x target PE multiple, and a 10% discount rate.
Intrinsic Value
$54.32
Margin of safety
-66.2%
Expected annual return
-9.7%
Base case assumptions: -9.6% annual earnings growth, 14x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the LEN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Lennar Corporation respond.
Open PE Calculator for LENCompany Overview
Lennar Corporation, an influential homebuilder in the United States, operates primarily under its widely recognized Lennar brand, alongside its various subsidiaries. The company structures its diverse business initiatives across several distinct divisions: regional homebuilding segments (East, Central, Texas, and West), a Financial Services arm, a Multifamily property development unit, and a broader "Lennar Other" category. At the heart of its operations, Lennar is deeply involved in the creation and sale of single-family homes, encompassing both attached and detached designs. Its activities also span the acquisition, development, and subsequent sale of land designated for residential use, in addition to the comprehensive development, construction, and ongoing management of rental properties in the multifamily sector. Expanding beyond physical construction, Lennar provides essential services such as residential mortgage financing, title protection, and closing services for its clientele and other interested parties. It also actively originates and divests securitized commercial mortgage loans. Furthermore, the corporation participates in strategic fund investment endeavors. Lennar's extensive customer base primarily caters to first-time purchasers, individuals seeking to upgrade their homes, active adult communities, and the luxury housing market. This enterprise, founded in 1954, is officially based in Miami, Florida.
Financial Metrics — LEN PE Stock Valuation Data
PE Ratio (TTM)
13.5x
PEG Ratio
n/m
Earnings Yield
7.39%
ROE (TTM)
7.4%
Revenue/Share (TTM)
$134.94
Dividend Yield
2.21%
Debt/Equity
0.29x
Frequently Asked Questions
What is the PE ratio of LEN?
The trailing twelve-month PE ratio of LEN reflects how much investors pay per dollar of Lennar Corporation's earnings. This metric is most useful when compared to Residential Construction peers and the company's own historical range.
Is LEN overvalued based on PE ratio?
LEN's PE of 13.5x combined with a PEG ratio of -0.29 provides a growth-adjusted perspective. LEN has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Residential Construction, a DCF analysis may be more appropriate.
How do I value LEN stock using PE ratio?
To value Lennar Corporation using PE: (1) Compare the current PE (13.5x) against the Residential Construction median to assess relative pricing, (2) check the PEG ratio (-0.29) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of LEN?
LEN's PEG ratio is -0.29, calculated by dividing the PE ratio (13.5x) by the expected earnings growth rate. Because LEN has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for LEN stock valuation?
PE ratio gives a quick relative read — how LEN is priced versus Residential Construction peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See LEN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value LEN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.