Lennar Corp (LEN) is slightly undervalued and Toll Brothers Inc (TOL) is undervalued.
Against our estimates of intrinsic value, TOL trades at the wider discount: a margin of safety of +35%, against +13% for LEN.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $211.05; the price of $137.57 is 35% below that value, and 73% of that value comes from beyond year five.
Leak Score 84/100 on 3 of 12 signals
| Metric | LEN | TOL |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $83.06 | $137.57 |
| Intrinsic value | $95.21 | $211.05 |
| Margin of safety | +13% | +35% |
| Leak Score | 54/100 (8/12) | 84/100 (3/12) |
| Market cap | $20.0B | $12.7B |
| Revenue growth, 5 years | 8.7% | 9.2% |
| Operating margin | 5.5% | 14.4% |
| Net margin | 4.1% | 11.1% |
| Return on equity | 5.9% | 14.4% |
| Debt to equity | 0.20 | 0.34 |
| P/E | 15.7x | 11.1x |
| Forward P/E | 15.5x | 9.9x |
| P/B | 0.9x | 1.5x |
| Dividend yield | 2.4% | 0.8% |