<div id="readability-page-1"><div><ul> <li>Wondering if PulteGroup at around US$132.20 still offers value or if most of the opportunity is already reflected in the price? This article walks through the numbers so you can judge how the current market price stacks up against a range of valuation checks.</li> <li>The stock shows returns of 11.0% over the last 7 days, 4.6% over 30 days, 11.0% year to date and 23.8% over 1 year, with longer term returns of 166.8% over 3 years and 225.1% over 5 years. That kind of track record often prompts investors to ask whether they are late to the story or whether the share price still lines up with fundamentals.</li> <li>Recent attention on PulteGroup has focused on how a large US homebuilder fits into broader housing market conditions and investor sentiment toward the sector. Headlines around home affordability, mortgage rates and the supply of new homes have helped shape views on both the opportunities and risks for companies like PulteGroup.</li> <li>PulteGroup currently scores 4 out of 6 on our valuation checks, which suggests several measures point to the shares looking inexpensive while others are more mixed. Next, we will walk through what those valuation checks actually look at and compare them with common approaches such as P/E and cash flow models, then finish with a different way to think about valuation that can add extra context to the numbers.</li> </ul> <p>PulteGroup delivered 23.8% returns over the last year. See how this stacks up to the rest of the Consumer Durables industry.</p> <h2>Approach 1: PulteGroup Discounted Cash Flow (DCF) Analysis</h2> <p>A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those back to a present value. It is essentially asking what the stream of future cash that might be available to shareholders is worth in today’s dollars.</p> <p>For PulteGroup, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $1.56b. Analysts provide explicit free cash flow estimates for the near term, and Simply Wall St then extrapolates further out, giving a set of projections that reach an implied free cash flow of just over $2.03b in 2035, in today’s money terms.</p> <p>Putting these projected cash flows together and discounting them back, the DCF model arrives at an estimated intrinsic value of about $152.69 per share. Against a current share price around $132.20, this implies the stock is about 13.4% below that estimate, which indicates PulteGroup appears UNDERVALUED on this cash flow view.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests PulteGroup is undervalued by 13.4%. Track this in your watchlist or portfolio, or discover 880 more undervalued stocks based on cash flows.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/23085cc7-610b-4ade-8e82-b9a624cf7a1f/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/23085cc7-610b-4ade-8e82-b9a624cf7a1f/chart/dcf"/><figcaption>PHM Discounted Cash Flow as at Jan 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for PulteGroup.</p> <h2>Approach 2: PulteGroup Price vs Earnings</h2> <p>For a profitable company like PulteGroup, the P/E ratio is a straightforward way to see how much you are paying for each dollar of earnings. Investors usually accept a higher P/E if they expect stronger growth or see the earnings as relatively resilient, and a lower P/E if they see more risk or less growth potential.</p> <p>PulteGroup currently trades on a P/E of 9.80x. That sits below both the Consumer Durables industry average of 11.73x and a peer average of 13.07x, which indicates the market is currently assigning a lower earnings multiple than these simple benchmarks.</p> <p>Simply Wall St’s Fair Ratio for PulteGroup is 14.31x. This is a proprietary view of what the P/E might be, given factors such as the company’s earnings growth profile, industry, profit margins, market cap and identified risks. Compared with a plain industry or peer comparison, the Fair Ratio can be more tailored because it accounts for those business specific characteristics rather than just grouping firms together.</p> <p>Compared with the Fair Ratio of 14.31x, PulteGroup’s current P/E of 9.80x suggests the shares may be undervalued on this earnings based check.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/23085cc7-610b-4ade-8e82-b9a624cf7a1f/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/23085cc7-610b-4ade-8e82-b9a624cf7a1f/chart/pe-multiple-vs-industry"/><figcaption>NYSE:PHM P/E Ratio as at Jan 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1446 companies where insiders are betting big on explosive growth.</p> <h3>Upgrade Your Decision Making: Choose your PulteGroup Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simple stories you create about PulteGroup that tie your view of its future revenue, earnings and margins to a financial forecast, a Fair Value, and a clear comparison with the current share price. This all takes place within Simply Wall St’s Community page where millions of investors share their views. For example, one investor might build a more optimistic PulteGroup Narrative that lines up with a Fair Value closer to the bullish US$163 analyst target, while another might lean toward the more cautious US$98 view. As new news, earnings or guidance arrive, your Narrative updates automatically so you can quickly see whether your Fair Value still supports holding, adding or reducing your position based on how it stacks up against today’s price.</p> <p>Do you think there's more to the story for PulteGroup? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/23085cc7-610b-4ade-8e82-b9a624cf7a1f/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/23085cc7-610b-4ade-8e82-b9a624cf7a1f/chart/quote-price"/><figcaption>NYSE:PHM 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>PulteGroup (PHM) is currently priced at around $132.20, raising questions about its value after significant share price gains. The stock has shown impressive returns, including 23.8% over the past year. Valuation checks indicate it may be undervalued, with a Discounted Cash Flow analysis suggesting a fair value of $152.69 per share, indicating a 13.4% undervaluation. Additionally, its P/E ratio of 9.80x is below industry averages, further supporting the undervaluation claim. Investors are encouraged to consider these factors when evaluating PulteGroup's potential.</p>

Is It Too Late To Consider PulteGroup (PHM) After Strong Multi‑Year Share Price Gains?