Lennar Corporation (LEN) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Lennar Corporation stock $142, price $88.74, upside +60.0%, quality 58 out of 100. Rating: strongly undervalued. Calculated from audited financials with 23 of our 26 valuation models and 37 quality factors, updated daily.
The stock costs 38% less than our calculation considers fair.
Fair value $141.98 · Strongly undervalued (38%)
Low debt
Generates free cash flow
Quality 58/100
Expensive Growth(revenue 5y +9.7 %/yr in USD)
Thin margins · 4.1% net margin (TTM)
2.3% dividend yield · Watch coverage
Some data
Revenue last quarter 9% below a year ago.
Trails peers(5/14)
Narrow moat32/100
Negative coverage
Risks from the AI analysis
🚩Price drop: Missed third-quarter estimates as new orders fell and full-year delivery guidance was cut🚩Missed estimates as orders fell and full-year guidance was cut🚩Land-option contracts could limit flexibility
Watch Lennar Corporation for free: we tell you when fair value or trend changes.Watch for free
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $57.92 – $178.67 · fair‑value band $86.02 – $264.29 · the $88.74 price screens below the $141.98 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding South Central, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments.
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The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties.
It also offers residential mortgage financing, title insurance, and closing services for home buyers and others, as well as originating and selling securitization commercial mortgage loans. In addition, the company is involved in fund investment activities.
It primarily serves first-time, move-up, active adult, and luxury homebuyers. The company was founded in 1954 and is based in Miami, Florida.
Stock analysis
Lennar Corporation (LEN) currently trades at $88.74, while our model-based Fair Value estimate is $141.98, implying the stock looks roughly 38% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $187.43 per share, and 16 of the 23 models we run sit above the $88.74 price.
Bear case: the Asset-Based group reads lowest at $19.65, and 7 of the 23 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $86.02 (bear) to $264.29 (bull), the price of $88.74 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Lennar Corporation reported revenue of $34.2B in FY2025 versus $27.1B in FY2021, a compound +5.9%/yr. Reported net income was $2.1B in FY2025, compounding −17.2%/yr from FY2021.
Key figures
Market cap $21.1B Large · P/E ratio 14.9 · P/S ratio 0.66 · EPS (TTM) $5.28 · Dividend yield 2.3% · Net margin 4.1% · Return on equity 6.0% · Return on assets (EBIT) 13.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 32 out of 100 (medium confidence).
What moves the price
The share trades about 32% below its 52-week high and 21% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 38% fair-value upside, at 60%, LEN screens cheaper than that median.
Fair Value models
Bear$86.02Fair Value $141.98Bull$264.29
Price $88.74 · Upside +60.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 11 months old). Earnings retained since then ($3.08 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income$77.25$83.93$98.8175
Owner Earnings$37.73$77.15$144.0672
EPV$64.52$75.54$84.9072
All 23 models by family
DCF Models
Owner Earnings$37.73$77.15$144.0672
5Y Revenue Exit$60.51$140.06$254.8568
5Y EBITDA Exit$58.30$135.32$237.3571
5Y P/E Exit$79.88$181.55$304.2367
10Y Revenue Exit$32.62$97.93$210.1560
10Y EBITDA Exit$34.63$94.55$195.6662
10Y P/E Exit$48.47$127.51$250.9958
Earnings-Based
Graham-Dodd$59.44$313.83$434.4661
Lynch FV$86.33$123.33$160.3358
PEG = 1.0$86.33$123.33$160.3355
EPV$64.52$75.54$84.9072
Dividend Discount
Gordon GGM$18.29$34.87$50.5265
DDM Multi-Stage$18.29$30.90$37.0165
Multiples
P/E Multiple$144.22$192.30$240.3761
P/S Multiple$111.45$148.59$185.7456
P/B Multiple$231.25$308.34$385.4253
EV/EBIT$145.61$197.66$249.7264
EV/EBITDA$98.63$135.03$171.4366
EV/Revenue$94.71$139.82$184.9452
Asset-Based
NCAV (Graham)$12.97$19.65$24.5653
Economic Profit
Residual Income$77.25$83.93$98.8175
ROIC Compounder$64.52$75.54$84.9071
Growth Earnings
Growth-Adj P/E$131.20$187.43$243.6566
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
BuyWarren E Buffett10% owner2× since Sep 23, 2026: 2,340,110 shares, avg. $81.31$190.3MSep 30, 2026
Plus 21 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.60/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.7%
Revenue growth 39 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−0.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year−2.4%
Dividend (yield on the price)2.3%
Per share before 2025divided by the spin-off factor 1.033
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.0.9% vs 9.3%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.14% → 8%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
more than +80 %
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+0.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −1.8% a year for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
AI conclusion: The even-flow production and land-banking model supports volume stability, yet the business shows only limited durable advantages typical of cyclical residential construction with modest returns on capital.
Main risk: Heavy reliance on third-party land banking and option agreements might lock Lennar into fixed take-down schedules and ongoing fees, reducing its ability to slow production or cut costs if buyer demand softens.
Bull case: Lennar could deepen partnerships with modular firms like ICON and refine its land-light model to lower build costs faster than rivals, sustaining volume and margins through efficiency gains.
Bear case: If larger rivals and modular entrants gain share while option commitments constrain adjustments, Lennar might face sustained margin pressure and slower growth as traditional site-built homes lose appeal to lower-cost alternatives.
Lennar missed third-quarter estimates as new orders fell nine percent and full-year delivery guidance was cut amid rising mortgage rates that have priced out nearly half of visitors. The company defends its even-flow production and land-banking model for volume stability, yet the same pressures that hit margins could intensify. Our models currently see it as undervalued. Will the strategy deliver resilient results or require deeper concessions to maintain pace?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Residential Construction · 62 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside+60.0% · Above median
Profitability
Return on equity (12 months)6.0% · Below median
Return on assets6.0% · Above median
Net margin (12 months)4.1% · Below median
Operating margin (12 months)5.7% · Below median
Growth and dividend
Revenue growth (quarter YoY)−8.7% · Below median
Dividend yield (12 months)2.3% · Below median
Balance sheet
Debt / equity0.28× · Above median
Valuation Multiplesvs Residential Construction median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Lennar Corporation Fair Value". https://www.fairvalue-calculator.com/stock/LEN
Frequently asked questions
Is Lennar Corporation (LEN) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $141.98 versus a price of $88.74, about +60% upside (undervalued).
What is the fair value of LEN?
Our model-based fair value for Lennar Corporation is $141.98 (as of Nov 8, 2026), built from audited fundamentals. The current price: $88.74.
What is the quality score of LEN?
Lennar Corporation has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Lennar Corporation (LEN)?
Our model-based price target is the fair value of $141.98 (as of Nov 8, 2026) from 23 valuation models. Cautious scenario $86.02, optimistic scenario $264.29. It is a calculation from audited fundamentals, not an analyst target.
What is the Lennar Corporation stock forecast for 2026?
Our models put fair value at $141.98, about +60% upside versus a price of $88.74 (undervalued). Cautious scenario $86.02, optimistic scenario $264.29. The calculation is refreshed regularly with new filings.
What is the revenue of Lennar Corporation (LEN)?
Lennar Corporation reported trailing-twelve-month revenue of about $32.0B (latest available figure, as of Nov 8, 2026).
Does Lennar Corporation pay a dividend?
Lennar Corporation currently shows a dividend yield of 2.25% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Lennar Corporation (LEN) and when is the ex-dividend date?
Lennar Corporation pays a dividend of $2.00 per share a year, a dividend yield of 2.3%. The last ex-dividend date was Oct 7, 2026. A dividend has been paid every year since at least 1984. The payout ratio is 37.9% of earnings. Free cash flow covers the dividend 0.07 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Lennar Corporation (LEN)?
For today's price to be fair in a discounted-cash-flow model, Lennar Corporation would have to grow free cash flow by more than 80 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.7 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of LEN use?
Our models discount Lennar Corporation at 10.1 %: a base by market capitalisation (large), damped by beta 1.38, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Lennar Corporation that is more than 80 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Lennar Corporation (LEN) delivered so far?
Over the past 5 years revenue at Lennar Corporation grew +8.7 % a year. The price currently implies free-cash-flow growth of more than 80 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Lennar Corporation (LEN) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Lennar Corporation (more than 80 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Lennar Corporation (LEN)?
The free-cash-flow yield on the price is 0.13 %: that much free cash flow Lennar Corporation produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lennar Corporation (LEN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lennar Corporation it is $141.98 per share (as of Nov 8, 2026), against a price of $88.74. It is the blended result of 23 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is Lennar Corporation stock overvalued or undervalued in 2026?
As of Nov 8, 2026, LEN trades below its calculated fair value: price $88.74, fair value $141.98, a gap of about +60% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LEN?
No. The price is what the market pays today ($88.74); the fair value is what the company's own numbers justify ($141.98). For Lennar Corporation the two are $53.24 per share apart. That gap is exactly why we show both numbers side by side.
How much is Lennar Corporation worth?
The market values Lennar Corporation at about $21.1B (market capitalisation, as of Nov 8, 2026). Per share that is $88.74; our models calculate a fair value of $141.98 per share.
What do the bullish and bearish scenarios say about LEN?
Our models span a range for Lennar Corporation: cautious scenario $86.02, base $141.98, optimistic $264.29 per share (as of Nov 8, 2026, price $88.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LEN?
Lennar Corporation trades at a price-to-earnings ratio of 14.9 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $141.98 is built from several models across several years. Other multiples: PEG 11.3, P/B 1.0, P/S 0.7, EV/EBITDA 11.8.
What is the PEG ratio of LEN?
The PEG ratio of Lennar Corporation is 11.30 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Lennar Corporation (LEN)?
Balance-sheet figures for Lennar Corporation (as of Nov 8, 2026): return on equity 6.0%, debt of 0.28 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is LEN from its 52-week high?
Lennar Corporation trades at $88.74, about 32% below its 52-week high of $130.21 and 21% above the low of $73.53 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $141.98 is for.
Which stocks are comparable to Lennar Corporation?
From the same area (Consumer Cyclical) we also value D.R. Horton, Inc, PulteGroup, Inc, NVR, Inc, Toll Brothers, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Lennar Corporation stock attractive at the current price?
The data as of Nov 8, 2026: price $88.74, calculated fair value $141.98 (+60%), Quality Score 58/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LEN calculated?
We run Lennar Corporation through 23 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $141.98 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Lennar Corporation currently trades 38% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Lennar Corporation (LEN)?
The closing price on Nov 6, 2026 was $88.74. Our model-based fair value is $141.98, about +60% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lennar Corporation right now?
The model range is unusually wide ($86.02 to $264.29). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Lennar Corporation (LEN) come from?
Earnings per share at Lennar Corporation grew +15.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share +13.7 %, EBIT margin +1.0 %, tax rate +1.4 %, residual (interest, one-offs) −0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Lennar Corporation
How large is the market capitalisation of Lennar Corporation (LEN)?
The market capitalisation of Lennar Corporation is $21.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Lennar Corporation (LEN)?
The price-to-sales ratio of Lennar Corporation is 0.66 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Lennar Corporation (LEN)?
Earnings per share at Lennar Corporation are $5.28 (price ÷ EPS = P/E 14.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Lennar Corporation (LEN)?
The dividend yield of Lennar Corporation is 2.3% (payout 37.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Lennar Corporation (LEN)?
The net margin of Lennar Corporation is 4.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Lennar Corporation (LEN)?
The return on equity (ROE) of Lennar Corporation is 6.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Lennar Corporation (LEN)?
On an EBIT basis the return on assets of Lennar Corporation is 13.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Lennar Corporation (LEN)?
The operating margin of Lennar Corporation is 5.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lennar Corporation (LEN)?
Revenue at Lennar Corporation is growing −8.7% versus a year earlier (3y avg +0.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Lennar Corporation (LEN)?
Earnings per share at Lennar Corporation are growing −48.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Lennar Corporation (LEN) carry?
The net debt of Lennar Corporation is $2.5B (fiscal year 2025, ≈ 89.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 8, 2026