Century Communities Inc (CCS) is overvalued 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 -48% for CCS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.1% (average of 2 methods) values the shares at $43.07; the price of $63.87 is 48% above that value.
Leak Score 53/100 on 9 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 | CCS | SDHC |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $63.87 | $10.35 |
| Intrinsic value | $43.07 | $17.38 |
| Margin of safety | -48% | +40% |
| Leak Score | 53/100 (9/12) | 47/100 (5/12) |
| Market cap | $1.8B | $526M |
| Revenue growth, 5 years | 5.1% | 17.0% |
| Operating margin | 3.2% | 4.5% |
| Net margin | 3.5% | 0.6% |
| Return on equity | 5.2% | 8.1% |
| Debt to equity | 0.66 | 0.86 |
| P/E | 14.0x | 14.5x |
| Forward P/E | 11.6x | 26.6x |
| P/B | 0.7x | 1.1x |
| Dividend yield | 2.0% | — |