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Hovnanian Enterprises, Inc (HOV) Fair Value & Analysis

Consumer Cyclical · US · Market cap $772M

HE Hovnanian Enterprises, Inc logo Hovnanian Enterprises, Inc HOV · US
Price$137.78
Fair Value$200.88
Upside+45.8%
Quality49/100
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Mixed Growth
Thin margins · 1.3% net margin
Moderate debt · generates free cash flow
Trails peers (2/14)
Narrow moat 26/100
Evidence: High Range $166.57 – $299.97 Share as image

Fair value as of: Jul 16, 2026

From 24 valuation models · updated 26 days ago

Fair value updated Jul 16, 2026, revised from $141.97 to $200.88 (+41.5%) since Jun 24, 2026. Share price +12.7% over the past month.

Below-average quality, screening 46% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($166.57). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($166.57 to $299.97) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$238.30 $33.56 Fair Value $200.88 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $33.56 – $238.30 · fair‑value band $166.57 – $299.97 · the $137.78 price screens below the $200.88 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Hovnanian Enterprises, Inc (HOV) currently trades at $137.78, while our model-based Fair Value estimate is $200.88, implying the stock looks roughly 45.8% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hovnanian Enterprises, Inc generated revenue of $2.9B at a net margin of 1.3%. Revenue declined 2.7% year over year. It earns a return on equity of 4.4%. Net debt stands at $657M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $166.57 (bear case) to $299.97 (bull case); at $137.78, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 51% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 44% fair-value upside, at 46%, HOV screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF $173.04 $278.92 $407.95 80
Residual Income $126.66 $131.23 $135.09 76
Rev-Margin DCF $63.20 $139.09 $225.48 74
All 24 models by family
DCF Models
FCF DCF $169.62 $289.07 $442.93 38
Owner Earnings $10.54 $62.04 31
5Y Revenue Exit $63.20 $134.10 $219.10 39
5Y EBITDA Exit $70.55 $147.52 $232.26 41
5Y P/E Exit $100.48 $202.14 $304.40 38
10Y Revenue Exit $101.74 $171.70 $256.09 36
10Y EBITDA Exit $109.14 $180.11 $265.06 37
10Y P/E Exit $126.42 $214.30 $314.22 35
Earnings-Based
Graham-Dodd $85.63 $235.91 $309.70 54
Lynch FV $46.98 $67.12 $87.25 50
PEG = 1.0 $46.98 $67.12 $87.25 46
Dividend Discount
Gordon GGM $16.35 $29.47 $40.57 70
DDM Multi-Stage $16.35 $24.20 $31.39 61
Multiples
P/E Multiple $207.78 $277.03 $346.29 63
P/S Multiple $160.55 $214.07 $267.59 58
P/B Multiple $160.55 $214.07 $267.59 55
EV/EBIT $58.92 $121.77 $184.61 53
EV/EBITDA $20.67 $70.77 $120.87 54
EV/Revenue $51.93 $106.40 43
Asset-Based
NCAV (Graham) $81.92 $109.77 $163.84 50
Growth DCF
Growth DCF $173.04 $278.92 $407.95 80
Rev-Margin DCF $63.20 $139.09 $225.48 74
Economic Profit
Residual Income $126.66 $131.23 $135.09 76
Growth Earnings
Growth-Adj P/E $164.31 $234.73 $305.15 68

Widest divergence: Growth Earnings ($234.73) versus Dividend Discount ($24.20). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $2.9B
Revenue growth (YoY) -2.7%
Net margin 1.3%
Return on equity 4.4%
Free cash flow $166M FY2025
P/E ratio 36.5
More key figures
Operating margin 3.4%
EPS (TTM) $3.61
EPS growth (YoY) -26.8%
Net debt $657M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 50 · Market factors (momentum, volatility) 44

Profitability 40
Margins and returns on capital today
Quality Growth 11
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 99
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas.

Full company description

Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans and title services. Hovnanian Enterprises, Inc. was founded in 1959 and is based in Matawan, New Jersey.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hovnanian Enterprises, Inc reported revenue of $3.0B in FY2025 versus $2.8B in FY2021, a compound +1.7%/yr. Reported net income was $63.9M in FY2025, compounding −43.1%/yr from FY2021.

Growth Quality 58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$3.0B
Latest YoY
−0.9%
Avg. growth/yr (3Y) 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.
+0.6%
Avg. growth/yr (5Y) 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.
+4.9%
Avg. growth/yr (40Y) 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.
+6.6%
Revenue +1.7%/yr
FY21 $2.8B
FY22 $2.9B
FY23 $2.8B
FY24 $3.0B
FY25 $3.0B
Net income −43.1%/yr
FY21 $608M
FY22 $225M
FY23 $206M
FY24 $242M
FY25 $63.9M

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Cite: Fair Value Calculator (2026). "Hovnanian Enterprises, Inc Fair Value". https://www.fairvalue-calculator.com/stock/HOV

Peer Group

Residential Construction · 65 stocks

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.

Quality Score 49 · Below median
Fair Value upside −19% · Below median
Return on equity (TTM) 4% · Below median
Return on assets 2% · Bottom 25%
Net margin (TTM) 1% · Bottom 25%
Operating margin (TTM) 3% · Below median
Revenue growth -3% · Below median
Debt / equity 1.12× · Higher than 75% of peers

Valuation Multiples vs Residential Construction median · lower = cheaper

P/E (TTM) 36.5× · Pricier than 75% of peers
P/B 0.93× · Pricier than median
P/S (TTM) 0.27× · Cheaper than 75% of peers
P/FCF 4.6× · Cheaper than median
EV/EBITDA 14.3× · Pricier than 75% of peers
PEG 2.00× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 8 · sector 51
FUTURE 0 · sector 0
PAST 18 · sector 33
HEALTH 44 · sector 88
DIVIDEND 0 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
D.R. Horton, Inc DHI $149.39 $214.93 +44%
PulteGroup, Inc PHM $124.75 $193.56 +55%
Lennar Corporation LEN $83.89 $146.58 +75%
NVR, Inc NVR $6,479 $7,821 +21%
Toll Brothers, Inc TOL $150.76 $225.76 +50%
Taylor Morrison Home Corporation TMHC $72.13 $144.47 +100%
Installed Building Products, Inc IBP $228.65 $209.51 -8%
Meritage Homes Corporation MTH $73.83 $104.26 +41%
Champion Homes, Inc SKY $82.70 $75.12 -9%
Cavco Industries, Inc CVCO $569.16 $421.10 -26%

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Frequently asked questions

Is Hovnanian Enterprises, Inc (HOV) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $200.88 versus a price of $137.78, about +46% (undervalued).
What is the fair value of HOV?
Our model-based fair value for Hovnanian Enterprises, Inc is $200.88 (as of Jul 16, 2026), built from audited fundamentals. The current price is $137.78.
What is the quality score of HOV?
Hovnanian Enterprises, Inc has a Quality Score of 49/100. 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 revenue of Hovnanian Enterprises, Inc (HOV)?
Hovnanian Enterprises, Inc reported trailing-twelve-month revenue of about $2.9B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of HOV?
The net profit margin of Hovnanian Enterprises, Inc is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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