Lennar Valuation

LEN Stock  USD 119.40  5.32  4.66%   
At this time, the firm appears to be overvalued. Lennar secures a last-minute Real Value of $113.18 per share. The latest price of the firm is $119.4. Our model forecasts the value of Lennar from analyzing the firm fundamentals such as Return On Equity of 0.0841, profit margin of 0.06 %, and Current Valuation of 31.31 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lennar's valuation include:
Price Book
1.3429
Enterprise Value
31.3 B
Enterprise Value Ebitda
10.8529
Price Sales
0.8626
Forward PE
16.9492
Overvalued
Today
119.40
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  119.4 Real  113.18 Target  108.62 Hype  118.09
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.
110.54
Downside
113.18
Real Value
129.83
Upside
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:
Earnings
Estimates
LowProjectedHigh
1.171.451.63
Details
Hype
Prediction
LowEstimatedHigh
115.45118.09120.73
Details
21 Analysts
Consensus
LowTarget PriceHigh
98.84108.62120.56
Details
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

4.59 Billion

Lennar Revenue by Product

Lennar Total Value Analysis

Lennar is now forecasted to have company total value of 31.31 B with market capitalization of 29.49 B, debt of 6.32 B, and cash on hands of 3.44 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 PriceMarket CapDebt ObligationsCash
31.31 B
29.49 B
6.32 B
3.44 B

Lennar Investor Information

About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.34. 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 2.36. The entity recorded earning per share (EPS) of 8.36. The firm last dividend was issued on the 4th of February 2026. Lennar had 1033:1000 split on the 21st of January 2025. Based on the analysis of Lennar's profitability, liquidity, and operating efficiency, Lennar is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.07430.0724
Fairly Up
Very volatile
Operating Income3.3 B3.2 B
Sufficiently Up
Slightly volatile

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 99.29 percent. This suggests that the Company is making $0.99 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.
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Lennar Profitability Analysis

Considering Lennar's profitability and operating efficiency indicators, Lennar's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Lennar's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-08-31
Previous Quarter
591 M
Current Value
490.2 M
Quarterly Volatility
374.3 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Lennar's Gross Profit is very stable compared to the past year. As of the 10th of February 2026, Operating Profit Margin is likely to grow to 0.07, while Pretax Profit Margin is likely to drop 0.07.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.16
Fairly Down
Pretty Stable
Net Profit Margin0.0470.0542
Fairly Down
Very volatile
Operating Profit Margin0.07430.0724
Fairly Up
Very volatile
Pretax Profit Margin0.0680.0741
Significantly Down
Pretty Stable
Return On Assets0.03780.0538
Way Down
Slightly volatile
Return On Equity0.110.0937
Fairly Up
Very volatile
For Lennar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lennar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lennar utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lennar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lennar over time as well as its relative position and ranking within its peers.

Lennar Earnings per Share Projection vs Actual

By analyzing Lennar's earnings estimates, investors can diagnose different trends across Lennar's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Lennar is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Lennar is projected to generate 1.4549 in earnings per share on the 31st of May 2026. Lennar earnings estimates show analyst consensus about projected Lennar EPS (Earning Per Share). It derives the highest and the lowest estimates based on Lennar's historical volatility. Many public companies, such as Lennar, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Lennar Ownership Allocation

Lennar maintains a total of 215.77 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. Also note that almost nine million seven hundred ninety-five thousand nine hundred fourty-six invesors are currently shorting Lennar expressing very little confidence in its future performance.

Lennar Profitability Analysis

The company reported the last year's revenue of 34.19 B. Total Income to common stockholders was 2.11 B with profit before taxes, overhead, and interest of 6.07 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 ReportedProjected for Next Year
Gross ProfitB7.3 B
Pretax Profit Margin 0.07  0.07 
Operating Profit Margin 0.07  0.07 
Net Profit Margin 0.05  0.05 
Gross Profit Margin 0.16  0.14 

Lennar Quarterly Retained Earnings

22.47 Billion

Lennar's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Lennar's value is low or high relative to the company's performance and growth projections. Determining the market value of Lennar can be done in different ways, such as multiplying its stock price by its outstanding shares.
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 10th of February 2026, Dividend Payout Ratio is likely to grow to 0.31, while Dividend Yield is likely to drop 0.02. . At this time, Lennar's Retained Earnings are very stable compared to the past year. As of the 10th of February 2026, Retained Earnings Total Equity is likely to grow to about 22.8 B, while Price Earnings Ratio is likely to drop 7.42.
Last ReportedProjected for Next Year
Dividends Paid599.1 M629.1 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.29  0.31 
Dividend Paid And Capex Coverage Ratio 0.27  0.26 
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 Outstanding257.7 M
Quarterly Earnings Growth Y O Y-0.526
Forward Price Earnings16.9492

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 discontinued.
To learn how to invest in Lennar Stock, please use our How to Invest in Lennar guide.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Will Household Durables sector continue expanding? Could Lennar diversify its offerings? Factors like these will boost the valuation of Lennar. Expected growth trajectory for Lennar significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Lennar data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth
(0.53)
Dividend Share
2
Earnings Share
8.36
Revenue Per Share
132.638
Quarterly Revenue Growth
(0.06)
Investors evaluate Lennar using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Lennar's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Lennar's market price to deviate significantly from intrinsic value.
Understanding that Lennar's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Lennar represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Lennar's market price signifies the transaction level at which participants voluntarily complete trades.