Latest Ratios: P/E Ratio 10.2x · EV/EBITDA 7.9x · ROE 8.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.2B | $33.8B | $47.4B | $36.2B | $25.5B | $32.2B | $23.5B | $19.0B | $13.2B | $14.9B | $10.0B |
| Enterprise Value | $22.8B | $36.4B | $46.9B | $34.8B | $27.0B | $35.8B | $28.1B | $27.1B | $21.7B | $20.2B | $14.9B |
| P/E Ratio → | 10.22 | 16.45 | 12.19 | 9.32 | 5.59 | 7.36 | 9.66 | 10.39 | 7.85 | 18.57 | 11.05 |
| P/S Ratio | 0.59 | 0.99 | 1.34 | 1.06 | 0.76 | 1.19 | 1.04 | 0.85 | 0.64 | 1.18 | 0.91 |
| P/B Ratio | 0.95 | 1.53 | 1.69 | 1.36 | 1.05 | 1.53 | 1.30 | 1.18 | 0.90 | 1.86 | 1.39 |
| P/FCF | 718.20 | 1200.80 | 21.25 | 7.13 | 7.93 | 13.05 | 5.70 | 13.61 | 8.34 | 16.82 | 23.21 |
| P/OCF | 93.36 | 156.09 | 19.74 | 7.00 | 7.79 | 12.72 | 5.60 | 12.81 | 7.70 | 14.94 | 19.71 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.06 | 1.32 | 1.02 | 0.80 | 1.32 | 1.25 | 1.22 | 1.06 | 1.60 | 1.36 |
| EV / EBITDA | 7.89 | 12.60 | 9.45 | 6.27 | 3.93 | 6.86 | 8.69 | 10.53 | 10.44 | 14.37 | 11.38 |
| EV / EBIT | 8.27 | 12.86 | 9.01 | 6.67 | 4.48 | 6.13 | 8.95 | 10.93 | 10.92 | 15.08 | 11.83 |
| EV / FCF | — | 1289.91 | 21.02 | 6.86 | 8.42 | 14.52 | 6.82 | 19.42 | 13.74 | 22.82 | 34.63 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 9.9% | 9.9% | 15.5% | 17.4% | 21.4% | 20.4% | 15.4% | 12.6% | 11.3% | 12.8% | 13.7% |
| Operating Margin | 8.0% | 8.0% | 13.7% | 15.9% | 20.2% | 18.9% | 14.0% | 11.1% | 9.7% | 10.6% | 11.5% |
| Net Profit Margin | 6.1% | 6.1% | 11.1% | 11.5% | 13.7% | 16.3% | 11.0% | 8.3% | 8.2% | 6.4% | 8.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.3% | 8.3% | 14.4% | 15.5% | 20.4% | 22.7% | 14.4% | 12.0% | 15.0% | 10.7% | 13.9% |
| ROA | 5.5% | 5.5% | 9.8% | 10.2% | 13.0% | 14.0% | 8.3% | 6.4% | 7.2% | 4.8% | 6.1% |
| ROIC | 7.9% | 7.9% | 13.8% | 16.0% | 20.2% | 16.3% | 10.0% | 7.9% | 8.2% | 7.9% | 8.0% |
| ROCE | 8.8% | 8.8% | 14.7% | 16.8% | 22.4% | 18.6% | 11.9% | 9.8% | 9.8% | 9.2% | 10.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.16 | 0.19 | 0.26 | 0.31 | 0.42 | 0.60 | 0.69 | 1.00 | 0.87 |
| Debt / EBITDA | 2.19 | 2.19 | 0.90 | 0.93 | 0.92 | 1.25 | 2.33 | 3.72 | 4.86 | 5.67 | 4.78 |
| Net Debt / Equity | — | 0.11 | -0.02 | -0.05 | 0.06 | 0.17 | 0.26 | 0.51 | 0.58 | 0.66 | 0.68 |
| Net Debt / EBITDA | 0.87 | 0.87 | -0.11 | -0.26 | 0.23 | 0.69 | 1.43 | 3.15 | 4.10 | 3.78 | 3.76 |
| Debt / FCF | — | 89.12 | -0.24 | -0.28 | 0.49 | 1.46 | 1.12 | 5.81 | 5.40 | 6.00 | 11.43 |
| Interest Coverage | 203.82 | 203.82 | 277.22 | 338.07 | 315.44 | 289.90 | 140.20 | 140.81 | 176.79 | 186.91 | 272.88 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.12 | 3.12 | 3.44 | 4.04 | 4.83 | 5.06 | 6.49 | 6.16 | 4.91 | 5.46 | 4.56 |
| Quick Ratio | 0.96 | 0.96 | 0.85 | 1.23 | 1.10 | 0.92 | 1.19 | 0.71 | 0.65 | 1.23 | 0.85 |
| Cash Ratio | 0.69 | 0.69 | 0.64 | 0.97 | 0.82 | 0.63 | 0.90 | 0.44 | 0.39 | 1.02 | 0.54 |
| Asset Turnover | — | 0.99 | 0.86 | 0.87 | 0.89 | 0.82 | 0.75 | 0.76 | 0.72 | 0.67 | 0.71 |
| Inventory Turnover | 2.60 | 2.60 | 1.47 | 1.50 | 1.21 | 1.13 | 1.11 | 1.08 | 1.05 | 1.00 | 1.01 |
| Days Sales Outstanding | — | 15.70 | 17.02 | 18.09 | 17.50 | 17.45 | 15.23 | 14.87 | 18.49 | 15.03 | 26.00 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 1.5% | 1.2% | 1.2% | 1.7% | 1.0% | 0.8% | 0.3% | 0.4% | 0.3% | 0.4% |
| Payout Ratio | 25.1% | 25.1% | 14.0% | 10.9% | 9.5% | 7.0% | 7.9% | 2.8% | 2.9% | 4.6% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.8% | 6.1% | 8.2% | 10.7% | 17.9% | 13.6% | 10.3% | 9.6% | 12.7% | 5.4% | 9.1% |
| FCF Yield | 0.1% | 0.1% | 4.7% | 14.0% | 12.6% | 7.7% | 17.5% | 7.3% | 12.0% | 5.9% | 4.3% |
| Buyback Yield | 8.9% | 5.3% | 4.8% | 3.3% | 4.1% | 4.4% | 1.4% | 2.8% | 2.3% | 0.2% | 0.2% |
| Total Shareholder Yield | 11.4% | 6.9% | 5.9% | 4.5% | 5.8% | 5.4% | 2.2% | 3.0% | 2.6% | 0.4% | 0.6% |
| Shares Outstanding | — | $258M | $272M | $283M | $290M | $307M | $309M | $318M | $309M | $237M | $235M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LEN stock.
Lennar Corporation's current P/E ratio is 10.2x. The historical average is 12.2x. This places it at the 52th percentile of its historical range.
Lennar Corporation's current EV/EBITDA is 7.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.
Lennar Corporation's return on equity (ROE) is 8.3%. The historical average is 12.2%.
Based on historical data, Lennar Corporation is trading at a P/E of 10.2x. This is at the 52th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lennar Corporation's current dividend yield is 2.48% with a payout ratio of 25.1%.
Lennar Corporation has 9.9% gross margin and 8.0% operating margin.
Lennar Corporation's Debt/EBITDA ratio is 2.2x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Margin erosion from incentives
Metrics are mathematically derived from official filings.
Deep Value Pricing Signals Cyclical Mispricing
Lennar trades at a forward P/E of 15.21 and a P/B of 0.97, a significant discount to peers like D.R. Horton (P/B 1.80) and NVR (P/B 5.03), suggesting the market is pricing in severe, sustained earnings contraction.
The valuation gap implies investors are applying a deep cyclical discount, likely overestimating the permanence of the current margin compression phase. The sub-1.0 price-to-book ratio is particularly notable, indicating the market values the company's assets at less than their stated accounting value, a level rarely justified without expectations of permanent capital impairment.
Margin Volatility Reveals Incentive-Driven Sales
Based on recent financial statements, Lennar's gross margin rebounded to 16.6% in Q3 2026, but this follows a trough of 5.9% in Q1 2026, a volatile pattern suggesting profitability is heavily influenced by quarter-to-quarter mix of incentives and land transactions.
The extreme swings indicate that the core homebuilding margin is being obscured by non-recurring land sales and the strategic use of buydowns to maintain volume. The true underlying earning power appears significantly higher than the recent 9.9% average suggests, but its stability is contingent on a less promotional market environment.
Deteriorating Returns Signal Capital Intensity
As reported in the financial data, Lennar's ROIC has declined from a robust 3.8% in Q4 2024 to just 1.4% in Q3 2026, a severe compression indicating the company is generating substantially less profit from each dollar of invested capital.
This erosion is driven almost entirely by collapsing margins rather than asset inefficiency, as asset turnover has remained relatively stable around 0.24. The trend is unfavorable and highlights that the current business model is not earning its cost of capital, which pressures the thesis for a successful transition to a higher-return, asset-light structure.
Cycle Time Improvement Masks Working Capital Strain
According to the data, the cash conversion cycle has improved to 160 days from a peak of 247 days, primarily due to a reduction in days inventory outstanding, which suggests faster construction turnover but may also reflect strategic inventory liquidation.
The improved cycle time is a positive operational development, but it occurs against a backdrop of negative free cash flow, indicating that efficiency gains are being overwhelmed by the scale of inventory investment and margin pressure. The working capital dynamic appears to be a source of cash consumption rather than a generator.
Minimal Leverage Provides Critical Cyclical Buffer
Based on reported filings, Lennar's debt-to-equity ratio of 0.20 is exceptionally low for the sector, providing a balance sheet fortress that mitigates refinancing risk and offers flexibility to navigate the current downturn without distress.
This conservative leverage profile stands in stark contrast to the company's operational volatility and is its primary defense against a prolonged rate-driven slump. While debt service is not a concern, the low leverage also reflects a deliberate capital allocation choice that prioritizes balance sheet strength over financial engineering for returns.
Price-to-Book Obscures Asset Quality Transition
The price-to-book ratio of 0.97 is likely the most misapplied metric for Lennar today, as it fails to account for the shifting composition of assets from owned land to controlled options and the embedded value in its proprietary technology platform.
As the company transitions toward a land-light model, its book value becomes less representative of future earning power. Investors using P/B as a primary screen may incorrectly perceive it as a deep value trap, while the more relevant metric would be price-to-tangible-book adjusted for the quality of the remaining land and the strategic value of its technology investments.