TOL (Toll Brothers) Moat Score: 4/10 (As of Jun. 28, 2026)


TOL Toll Brothers Inc TOL
93 GF Score
Price $164.14
GF Value $136.84
Valuation Modestly Overvalued
! 8 Warning Signs
View Full Analysis

What is Toll Brothers Moat Score?

Toll Brothers TOL +1.27% 93 Moat Score is 4 as of Jun. 28, 2026. GuruFocus rates TOL with a GF Score™ of 93/100 and a GF Value™ of $136.84 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 102 Homebuilding & Construction companies, Toll Brothers ranks better than 84.31% on this metric.

Toll Brothers has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Toll Brothers has Narrow Moat: Toll Brothers Inc has a modest moat due to its brand strength and economies of scale in luxury homebuilding. However, the cyclical nature of the industry and lack of significant switching costs prevent a stronger moat classification.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Toll Brothers might have Narrow Moat - Discernible but modest moat.

Toll Brothers  (NYSE:TOL) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Toll Brothers Moat Score Related Terms

TOL vs NVR, IBP, TMHC: Moat Score Comparison

For the Residential Construction subindustry, Toll Brothers's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Toll Brothers Moat Score vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Moat Score distribution charts can be found below:

* The bar in red indicates where Toll Brothers's Moat Score falls into.


TOL
93GF Score
Toll Brothers Inc TOL
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Toll Brothers (TOL) has a Moat Score of 4 as of Jun. 28, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Toll Brothers ranks #16 out of 102 companies in the Homebuilding & Construction industry, placing it in the top 15.7%.
Is Toll Brothers' Moat Score too high?
Toll Brothers' current Moat Score is 4. Based on the distribution chart, Toll Brothers ranks #16 out of 102 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Toll Brothers has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' Moat Score compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #16 out of 102 companies for Moat Score. This places Toll Brothers in the top 16% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Homebuilding & Construction company?
A good Moat Score depends on the Homebuilding & Construction industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Toll Brothers's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (TOL) is currently considered Modestly Overvalued. The stock's GF Value™ is $136.84, compared to a current price of $164.14 — trading 20% above its estimated fair value. The current Moat Score is 4. Toll Brothers' overall GF Score™ is 93/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Toll Brothers (TOL), the current Moat Score is 4 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Toll Brothers (TOL) Overvalued in 2026?

Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued. The current stock price of $164.14 is trading 20% above its estimated GF Value™ of $136.84. GuruFocus considers Toll Brothers to be Modestly Overvalued.

Key valuation signals for TOL:

  • Moat Score: 4
  • GF Value™: $136.84 vs. price of $164.14 (20% above fair value)
  • GF Score™: 93/100 with 8 warning signs

No single metric tells the full story. See the TOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Toll Brothers Business Description

Address 1140 Virginia Drive, Fort Washington, PA, USA, 19034
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
93GF Score

Get the complete analysis for TOL

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$164.14
Price
$136.84
GF Value