PulteGroup, Inc. (PHM) Stock Valuation — PE Analysis
Residential Construction · NYSE
Current Price
$123.17
PE Ratio (TTM)
11.6x
Intrinsic Value
$119.55
-3.0% margin of safety
COMPETITIVE MOAT
↑Brand Recognition & Scale
PulteGroup benefits from strong brand recognition across its various homebuilding names. Its significant scale allows for operational efficiencies and purchasing power, creating a cost advantage.
↑Land Acquisition Expertise
The company's ability to strategically acquire and develop land in desirable locations is a key differentiator. This foresight secures future inventory and limits competition.
↑Diversified Product Offerings
PulteGroup offers a range of home types and price points catering to different buyer segments. This diversification reduces reliance on any single market niche.
INVESTMENT RISKS
↓Interest Rate Sensitivity
The housing market is highly sensitive to interest rates. Rising rates can significantly impact affordability and dampen demand for new homes.
↓Regulatory & Permitting Hurdles
Navigating complex and evolving local zoning laws and permitting processes can lead to project delays and increased costs. These can vary significantly by region.
↓Competition & Market Cycles
The residential construction industry is cyclical and highly competitive. Economic downturns or increased competition can pressure margins and sales volumes.
Base case
PHM base case PE valuation
A base case PE valuation for PHM estimates a fair value of about $119.55 per share, against a current price of $123.17. The model assumes -0.1% annual earnings growth, a 12x target PE multiple, and a 10% discount rate.
Intrinsic Value
$119.55
Margin of safety
-3.0%
Expected annual return
-0.6%
Base case assumptions: -0.1% annual earnings growth, 12x 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 PHM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for PulteGroup, Inc. respond.
Open PE Calculator for PHMCompany Overview
PulteGroup, Inc. operates as a leading American homebuilder, primarily focusing on acquiring and developing land for residential purposes, followed by the construction of various types of homes across the United States. Its diverse portfolio encompasses a range of housing designs, including single-family detached residences, townhouses, condominiums, and duplexes, marketed under well-known brand names such as Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods. As of December 31, 2021, PulteGroup managed an extensive land inventory totaling 228,296 lots, with 109,078 parcels owned outright and an additional 119,218 secured through land option agreements. Beyond its core construction activities, the company provides comprehensive financial services to its homebuyers, including originating mortgage loans and subsequently selling their servicing rights, as well as offering essential title insurance, examination, and closing services. Established in 1950, the company, initially known as Pulte Homes, Inc., adopted its current name, PulteGroup, Inc., in March 2010 and maintains its corporate headquarters in Atlanta, Georgia.
Financial Metrics — PHM PE Stock Valuation Data
PE Ratio (TTM)
11.6x
PEG Ratio
n/m
Earnings Yield
8.65%
ROE (TTM)
15.9%
Revenue/Share (TTM)
$87.78
Dividend Yield
0.78%
Debt/Equity
0.19x
Frequently Asked Questions
What is the PE ratio of PHM?
The trailing twelve-month PE ratio of PHM reflects how much investors pay per dollar of PulteGroup, Inc.'s earnings. This metric is most useful when compared to Residential Construction peers and the company's own historical range.
Is PHM overvalued based on PE ratio?
PHM's PE of 11.6x combined with a PEG ratio of -0.43 provides a growth-adjusted perspective. PHM 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 PHM stock using PE ratio?
To value PulteGroup, Inc. using PE: (1) Compare the current PE (11.6x) against the Residential Construction median to assess relative pricing, (2) check the PEG ratio (-0.43) 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 PHM?
PHM's PEG ratio is -0.43, calculated by dividing the PE ratio (11.6x) by the expected earnings growth rate. Because PHM 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 PHM stock valuation?
PE ratio gives a quick relative read — how PHM is priced versus Residential Construction peers. DCF provides an absolute value based on projected free cash flows. For PHM, with a strong ROE of 15.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 PHM 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 PHM 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.