Lennar Corporation (LEN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+44.7%

$132.38

vs $91.48 price

Levered DCF

$99.53

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.65

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.32×	12.19×	9.32×	5.58×	7.36×	9.63×	10.36×	7.83×
P/B	1.53×	1.7×	1.36×	1.06×	1.55×	1.3×	1.19×	0.9×
P/S	0.98×	1.34×	1.06×	0.76×	1.19×	1.04×	0.85×	0.64×
EV / EBITDA	12.18×	8.82×	6.54×	4.41×	6.05×	8.69×	10.53×	10.43×
Gross margin	9.9%	15.5%	17.4%	21.4%	20.4%	15.4%	12.6%	11.3%
Operating margin	8.0%	13.7%	15.9%	20.2%	18.9%	14.0%	11.1%	9.7%
Net margin	6.1%	11.1%	11.5%	13.7%	16.3%	11.0%	8.3%	8.2%
Current ratio	3.12×	3.44×	4.04×	4.83×	5.06×	6.49×	6.16×	4.91×
Debt / equity	0.29×	0.16×	0.19×	0.26×	0.31×	0.42×	0.6×	0.69×
Interest coverage	198.24×	258.38×	352.45×	354.85×	255.1×	140.2×	140.81×	176.79×
Dividend yield	1.6%	1.2%	1.2%	1.7%	1.0%	0.8%	0.3%	0.4%
Payout ratio	25.1%	14.0%	10.9%	9.5%	7.0%	7.9%	2.8%	2.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.5%	14.1%	14.8%	19.1%	21.3%	13.7%	11.6%	11.6%
Return on invested capital	6.6%	10.3%	11.8%	15.2%	12.7%	8.8%	6.7%	5.6%
Return on assets	6.0%	9.5%	10.0%	12.1%	13.3%	8.2%	6.3%	5.9%
Free cash flow yield	0.1%	4.7%	14.0%	12.6%	7.7%	17.5%	7.3%	12.0%
Earnings yield	6.2%	8.3%	10.9%	18.1%	13.8%	10.5%	9.7%	12.9%
Enterprise value	$36.1B	$46.9B	$34.8B	$27B	$35.8B	$28.1B	$27.1B	$21.7B
Net debt / EBITDA	0.85×	-0.1×	-0.27×	0.26×	0.61×	1.43×	3.15×	4.1×
Cash conversion cycle (days)	135	242	241	297	319	325	334	343