NVR Inc (NVR) is fairly valued 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 -4% for NVR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $6065.97; the price of $6338.92 is 4% above that value, and 75% 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 | NVR | PHM |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $6338.92 | $122.29 |
| Intrinsic value | $6065.97 | $179.30 |
| Margin of safety | -4% | +32% |
| Leak Score | 59/100 (3/12) | 77/100 (9/12) |
| Market cap | $16.9B | $22.9B |
| Revenue growth, 5 years | 6.5% | 9.4% |
| Operating margin | 13.0% | 15.6% |
| Net margin | 12.2% | 11.6% |
| Return on equity | 31.5% | 14.9% |
| Debt to equity | 0.31 | 0.19 |
| P/E | 16.4x | 12.5x |
| Forward P/E | 15.8x | 11.0x |
| P/B | 4.8x | 1.8x |
| Dividend yield | — | 0.8% |