Lennar Valuation
| LEN Stock | USD 174.10 0.70 0.40% |
At this time, the firm appears to be overvalued. Lennar secures a last-minute Real Value of $148.32 per share. The latest price of the firm is $174.1. Our model forecasts the value of Lennar from analyzing the firm fundamentals such as Return On Equity of 0.16, profit margin of 0.12 %, and Current Valuation of 46.42 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lennar's valuation include:
Price Book 1.7158 | Enterprise Value 46.4 B | Enterprise Value Ebitda 8.4235 | Price Sales 1.2865 | Forward PE 10.4932 |
Overvalued
Today
Please note that Lennar's price fluctuation is very steady at this time. Calculation of the real value of Lennar is based on 3 months time horizon. Increasing Lennar's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Lennar is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lennar Stock. However, Lennar's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 174.1 | Real 148.32 | Target 138.88 | Hype 174.1 |
The intrinsic value of Lennar's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Lennar's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Lennar helps investors to forecast how Lennar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lennar more accurately as focusing exclusively on Lennar's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lennar's intrinsic value based on its ongoing forecasts of Lennar's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lennar's closest peers.
Lennar Cash |
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Lennar Valuation Trend
Knowing Lennar's actual value is paramount for traders when making sound investment determinations. Using both Lennar's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Lennar Revenue by Product
Lennar Total Value Analysis
Lennar is now forecasted to have company total value of 46.42 B with market capitalization of 46.91 B, debt of 2.94 B, and cash on hands of 4.78 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Lennar fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
46.42 B | 46.91 B | 2.94 B | 4.78 B |
Lennar Investor Information
About 94.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.72. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lennar has Price/Earnings To Growth (PEG) ratio of 1.22. The entity recorded earning per share (EPS) of 15.11. The firm last dividend was issued on the 9th of October 2024. Lennar had 1017:1000 split on the 9th of November 2017. Based on the analysis of Lennar's profitability, liquidity, and operating efficiency, Lennar may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.17 | 0.1485 |
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| Operating Income | 6.7 B | 6.4 B |
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Lennar Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lennar has an asset utilization ratio of 87.25 percent. This suggests that the Company is making $0.87 for each dollar of assets. An increasing asset utilization means that Lennar is more efficient with each dollar of assets it utilizes for everyday operations.Lennar Ownership Allocation
Lennar maintains a total of 238.81 Million outstanding shares. The majority of Lennar outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Lennar to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Lennar. Please pay attention to any change in the institutional holdings of Lennar as this could imply that something significant has changed or is about to change at the company. Please note that on June 23, 2020, Representative Donna Shalala of US Congress acquired $100k to $250k worth of Lennar's common stock.Lennar Profitability Analysis
The company reported the last year's revenue of 34.23 B. Total Income to common stockholders was 3.96 B with profit before taxes, overhead, and interest of 8.2 B.Lennar Past Distributions to stockholders
About Lennar Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Lennar. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lennar based exclusively on its fundamental and basic technical indicators. By analyzing Lennar's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Lennar's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lennar. We calculate exposure to Lennar's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Lennar's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 39.1 B | 41 B | |
| Pretax Profit Margin | 0.12 | 0.07 | |
| Operating Profit Margin | 0.15 | 0.17 | |
| Net Profit Margin | 0.07 | 0.05 | |
| Gross Profit Margin | 0.17 | 0.14 |
Lennar Quarterly Retained Earnings |
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A single share of Lennar represents a small ownership stake in the entity. As a stockholder of Lennar, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Lennar Dividends Analysis For Valuation
At this time, Lennar's Dividends Paid is very stable compared to the past year. As of the 28th of November 2024, Dividend Yield is likely to grow to 0.01, while Dividend Paid And Capex Coverage Ratio is likely to drop 0.39. . As of the 28th of November 2024, Retained Earnings is likely to grow to about 27 B. Also, Retained Earnings Total Equity is likely to grow to about 22.8 B
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 495.1 M | 519.9 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.04 | 0.05 | |
| Dividend Paid And Capex Coverage Ratio | 0.41 | 0.39 |
There are various types of dividends Lennar can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lennar shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lennar directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lennar pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lennar by the value of the dividends paid out.
Lennar Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 283.3 M | |
| Quarterly Earnings Growth Y O Y | 0.101 | |
| Forward Price Earnings | 10.4932 |
Lennar Current Valuation Indicators
Lennar's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lennar's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lennar, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lennar's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lennar's worth.When determining whether Lennar offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lennar's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lennar Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lennar Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lennar. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. To learn how to invest in Lennar Stock, please use our How to Invest in Lennar guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lennar. If investors know Lennar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lennar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.101 | Dividend Share 1.875 | Earnings Share 15.11 | Revenue Per Share 132.561 | Quarterly Revenue Growth 0.079 |
The market value of Lennar is measured differently than its book value, which is the value of Lennar that is recorded on the company's balance sheet. Investors also form their own opinion of Lennar's value that differs from its market value or its book value, called intrinsic value, which is Lennar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lennar's market value can be influenced by many factors that don't directly affect Lennar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lennar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lennar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lennar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.