AMREP Corp (AXR) is fairly valued and Smith Douglas Homes Corp (SDHC) is undervalued.
Against our estimates of intrinsic value, SDHC trades at the wider discount: a margin of safety of +40%, against -0% for AXR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.5% (average of 3 methods) values the shares at $22.59; the price of $22.60 sits right on that value, and 71% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $17.38; the price of $10.35 is 40% below that value, and 76% of that value comes from beyond year five.
Leak Score 47/100 on 5 of 12 signals
| Metric | AXR | SDHC |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $22.60 | $10.35 |
| Intrinsic value | $22.59 | $17.38 |
| Margin of safety | -0% | +40% |
| Leak Score | 0/100 (2/12) | 47/100 (5/12) |
| Market cap | $120M | $526M |
| Revenue growth, 5 years | 5.7% | 17.0% |
| Operating margin | 14.8% | 4.5% |
| Net margin | 14.3% | 0.6% |
| Return on equity | 4.3% | 8.1% |
| Debt to equity | 0.00 | 0.86 |
| P/E | 20.7x | 14.5x |
| Forward P/E | 16.4x | 26.6x |
| P/B | 0.8x | 1.1x |