Installed Building Products Inc (IBP) is overvalued and PulteGroup Inc (PHM) is undervalued.
Against our estimates of intrinsic value, PHM trades at the wider discount: a margin of safety of +32%, 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 10.5% (average of 3 methods) values the shares at $179.30; the price of $122.29 is 32% below that value, and 72% of that value comes from beyond year five.
Leak Score 77/100 on 9 of 12 signals
| Metric | IBP | PHM |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $211.94 | $122.29 |
| Intrinsic value | $164.02 | $179.30 |
| Margin of safety | -29% | +32% |
| Leak Score | 59/100 (3/12) | 77/100 (9/12) |
| Market cap | $5.6B | $22.9B |
| Revenue growth, 5 years | 12.4% | 9.4% |
| Operating margin | 12.5% | 15.6% |
| Net margin | 8.5% | 11.6% |
| Return on equity | 38.5% | 14.9% |
| Debt to equity | 1.87 | 0.19 |
| P/E | 22.8x | 12.5x |
| Forward P/E | 18.5x | 11.0x |
| P/B | 8.8x | 1.8x |
| Dividend yield | 1.6% | 0.8% |