Cavco Industries Inc (CVCO) is slightly overvalued and Champion Homes Inc (SKY) is slightly undervalued.
Against our estimates of intrinsic value, SKY trades at the wider discount: a margin of safety of +20%, 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 10.1% (average of 3 methods) values the shares at $93.49; the price of $75.11 is 20% below that value, and 73% of that value comes from beyond year five.
Leak Score 71/100 on 12 of 12 signals
| Metric | CVCO | SKY |
|---|---|---|
| Verdict | Slightly overvalued | Slightly undervalued |
| Price | $510.97 | $75.11 |
| Intrinsic value | $457.76 | $93.49 |
| Margin of safety | -12% | +20% |
| Leak Score | 63/100 (12/12) | 71/100 (12/12) |
| Market cap | $3.9B | $4.1B |
| Revenue growth, 5 years | 15.3% | 13.4% |
| Operating margin | 9.6% | 8.9% |
| Net margin | 7.9% | 7.2% |
| Return on equity | 16.7% | 12.2% |
| Debt to equity | 0.04 | 0.08 |
| P/E | 22.2x | 22.0x |
| Forward P/E | 18.2x | 17.9x |
| P/B | 3.5x | 2.6x |