Cavco Industries Inc (CVCO) is slightly overvalued and Lennar Corp (LEN) is fairly valued.
Both trade above our estimate of their intrinsic value. LEN is the closer of the two: -4%, against -12% for CVCO.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 11.1% (average of 3 methods) values the shares at $457.76; the price of $510.97 is 12% above that value, and 70% of that value comes from beyond year five.
Leak Score 63/100 on 12 of 12 signals
Discounting its cash flows at 10.9% (average of 3 methods) values the shares at $72.64; the price of $75.87 is 4% above that value, and 69% of that value comes from beyond year five.
Leak Score 42/100 on 10 of 12 signals
| Metric | CVCO | LEN |
|---|---|---|
| Verdict | Slightly overvalued | Fairly valued |
| Price | $510.97 | $75.87 |
| Intrinsic value | $457.76 | $72.64 |
| Margin of safety | -12% | -4% |
| Leak Score | 63/100 (12/12) | 42/100 (10/12) |
| Market cap | $3.9B | $18.0B |
| Revenue growth, 5 years | 15.3% | 8.7% |
| Operating margin | 9.6% | 5.4% |
| Net margin | 7.9% | 4.0% |
| Return on equity | 16.7% | 5.9% |
| Debt to equity | 0.04 | 0.28 |
| P/E | 22.2x | 14.3x |
| Forward P/E | 18.2x | 14.7x |
| P/B | 3.5x | 0.8x |
| Dividend yield | — | 2.6% |