Installed Building Products Inc (IBP) is overvalued and Lennar Corp (LEN) is slightly undervalued.
Against our estimates of intrinsic value, LEN trades at the wider discount: a margin of safety of +13%, against -29% for IBP.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.2% (average of 3 methods) values the shares at $164.02; the price of $211.94 is 29% above that value, and 70% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 11.1% (average of 3 methods) values the shares at $95.21; the price of $83.06 is 13% below that value, and 69% of that value comes from beyond year five.
Leak Score 54/100 on 8 of 12 signals
| Metric | IBP | LEN |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $211.94 | $83.06 |
| Intrinsic value | $164.02 | $95.21 |
| Margin of safety | -29% | +13% |
| Leak Score | 59/100 (3/12) | 54/100 (8/12) |
| Market cap | $5.6B | $20.0B |
| Revenue growth, 5 years | 12.4% | 8.7% |
| Operating margin | 12.5% | 5.5% |
| Net margin | 8.5% | 4.1% |
| Return on equity | 38.5% | 5.9% |
| Debt to equity | 1.87 | 0.20 |
| P/E | 22.8x | 15.7x |
| Forward P/E | 18.5x | 15.5x |
| P/B | 8.8x | 0.9x |
| Dividend yield | 1.6% | 2.4% |