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Highest P/E Ratio in the Homebuilding Industry Detected in Shares of Cavco Industries (CVCO, NVR, KBH, MDC, DHI)

By Amy Schwartz

Below are the three companies in the Homebuilding industry with the highest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

Cavco Industries ranks highest with a a P/E ratio of 37.34. Following is NVR Inc with a a P/E ratio of 21.33. KB Home ranks third highest with a a P/E ratio of 18.78.

MDC Holdings follows with a a P/E ratio of 17.79, and DR Horton rounds out the top five with a a P/E ratio of 14.69.

SmarTrend recommended that subscribers consider buying shares of Cavco Industries on February 25th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $80.38. Since that recommendation, shares of Cavco Industries have risen 25.7%. We continue to monitor Cavco Industries for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest p/e ratio cavco industries nvr inc KB Home mdc holdings DR Horton