Toll Brothers, Inc. (TOL) 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

+25.1%

$191.28

vs $152.91 price

Levered DCF

$126.58

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

4.12

Safe zone

Rating

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	9.92×	9.66×	5.67×	3.91×	9.1×	12.33×	9.77×	6.84×
P/B	1.61×	1.98×	1.14×	0.84×	1.43×	1.13×	1.14×	1.07×
P/S	1.22×	1.4×	0.78×	0.49×	0.86×	0.78×	0.8×	0.72×
EV / EBITDA	8.05×	7.77×	4.93×	4.02×	8.28×	12.32×	10.56×	7.96×
Gross margin	26.0%	27.9%	26.4%	24.2%	22.1%	20.0%	19.6%	20.6%
Operating margin	15.7%	18.8%	17.3%	14.7%	11.6%	7.8%	9.4%	11.0%
Net margin	12.3%	14.5%	13.7%	12.5%	9.5%	6.3%	8.2%	10.5%
Current ratio	4.17×	4.61×	4.28×	4.12×	4.4×	5.22×	6.07×	5.78×
Debt / equity	0.35×	0.39×	0.44×	0.58×	0.72×	0.86×	0.77×	0.78×
Interest coverage	0×	0×	0×	0×	0×	225.52×	0×	0×
Dividend yield	0.7%	0.6%	1.2%	1.8%	1.0%	1.0%	1.1%	1.2%
Payout ratio	7.2%	5.9%	6.6%	6.9%	9.2%	12.7%	10.8%	8.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.3%	20.5%	20.2%	21.4%	15.7%	9.2%	11.6%	15.7%
Return on invested capital	11.3%	14.2%	12.8%	11.7%	8.3%	4.5%	5.5%	7.3%
Return on assets	9.3%	11.8%	11.0%	10.5%	7.2%	4.0%	5.4%	7.3%
Free cash flow yield	7.7%	6.2%	15.3%	18.2%	16.3%	16.3%	6.1%	11.2%
Earnings yield	10.1%	10.4%	17.6%	25.6%	11.0%	8.1%	10.2%	14.6%
Enterprise value	$15B	$16.8B	$9.5B	$7.2B	$9.7B	$8.3B	$8.4B	$7.6B
Net debt / EBITDA	0.89×	0.77×	0.88×	1.19×	1.83×	4.19×	3.31×	2.62×
Cash conversion cycle (days)	477	435	424	384	395	477	485	477