PulteGroup, Inc. (PHM) Stock Valuation — PE Analysis
Residential Construction · NYSE
Current Price
$132.31
PE Ratio (TTM)
13.5x
Intrinsic Value
$142.01
+6.8% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Reputation
PulteGroup benefits from strong brand recognition, particularly with its Del Webb active adult communities. This established reputation fosters trust and loyalty among homebuyers.
↑Scale and Operational Efficiency
As one of the largest homebuilders, PulteGroup achieves economies of scale in land acquisition, construction, and supply chain management. This leads to cost advantages and improved margins.
↑Diversified Product Portfolio
The company offers a range of home types and price points across multiple brands, catering to diverse buyer segments. This diversification reduces reliance on any single market niche.
INVESTMENT RISKS
↓Economic Downturn and Recession
A significant economic slowdown or recession could lead to widespread job losses and reduced consumer confidence. This would negatively impact housing demand and PulteGroup's sales.
↓Regulatory and Zoning Changes
Changes in local zoning laws, building codes, or environmental regulations can increase construction costs and timelines. This can also limit the availability of suitable land for development.
↓Competition from Other Builders
The residential construction industry is highly competitive. PulteGroup faces ongoing competition from national builders, regional players, and smaller custom home builders.
Base case
PHM base case PE valuation
At a current price of $132.31, the base case PE valuation puts PHM fair value near $142.01 per share. That figure assumes 4.4% yearly earnings growth, a target PE multiple of 13x, and a 10% discount rate.
Intrinsic Value
$142.01
Margin of safety
+6.8%
Expected annual return
+1.4%
Base case assumptions: 4.4% annual earnings growth, 13x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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. engages in the homebuilding business. The firm is also involved in mortgage banking and title and insurance brokerage operations. It operates through the Homebuilding and Financial services business segments. The Homebuilding segment includes operations from Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia, Georgia, North Carolina, South Carolina, Tennessee, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Texas, Arizona, California, Nevada, New Mexico, and Washington. The Financial Services segment is composed of mortgage banking and title operations. The company was founded by William J. Pulte in 1950 and is headquartered in Atlanta, GA.
Financial Metrics — PHM PE Stock Valuation Data
PE Ratio (TTM)
13.5x
PEG Ratio
n/m
Earnings Yield
7.52%
ROE (TTM)
14.7%
Revenue/Share (TTM)
$85.58
Dividend Yield
0.76%
Debt/Equity
0.18x
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 13.5x combined with a PEG ratio of -0.50 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 (13.5x) against the Residential Construction median to assess relative pricing, (2) check the PEG ratio (-0.50) 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 -0.50, calculated by dividing the PE ratio (13.5x) 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 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 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.