Champion Homes Inc (SKY) is slightly overvalued 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 -20% for SKY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $74.32; the price of $88.84 is 20% above that value, and 74% of that value comes from beyond year five.
Leak Score 59/100 on 3 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 | SKY | TOL |
|---|---|---|
| Verdict | Slightly overvalued | Undervalued |
| Price | $88.84 | $137.57 |
| Intrinsic value | $74.32 | $211.05 |
| Margin of safety | -20% | +35% |
| Leak Score | 59/100 (3/12) | 84/100 (3/12) |
| Market cap | $4.8B | $12.7B |
| Revenue growth, 5 years | 13.4% | 9.2% |
| Operating margin | 8.9% | 14.4% |
| Net margin | 7.2% | 11.1% |
| Return on equity | 12.2% | 14.4% |
| Debt to equity | 0.08 | 0.34 |
| P/E | 26.0x | 11.1x |
| Forward P/E | 20.8x | 9.9x |
| P/B | 3.1x | 1.5x |
| Dividend yield | — | 0.8% |