LENNAR CORP /NEW/ (LEN-B)

General Bldg Contractors - Residential Bldgs

Latest Price

$78.57

TTM P/E

12.31

Normalized P/E

6.46

Div Yield

Book Value

89.80

P/B Ratio

0.88

Valuation metrics

EPS: $14.31

Book value / share: $80.73

Formula: √(22.5 × EPS × BVPS)

Graham Number

$161.22

+105% upside

Norm. op. income: $5.2B (median of 7yr)

Tax rate: 23%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$138.07

+76% upside

Base FCF: $2.5B (median of recent 5yr)

Growth: 5%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$146.90

+87% upside

EPS: $14.31

Target P/E: 6×

Formula: EPS × P/E

P/E Fair Value

$85.86

+9% upside