Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
The historical rank and industry rank for Hovnanian Enterprises's Peter Lynch Fair Value or its related term are showing as below:
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Hovnanian Enterprises was 0.74. The lowest was 0.04. And the median was 0.16.
HOVVB's Price-to-Peter-Lynch-Fair-Value is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 0.65 * Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Hovnanian Enterprises (OTCPK:HOVVB) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 0 instead of 15 in this case.
Hovnanian Enterprises's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
110.00
/
N/A
=
N/A
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hovnanian Enterprises Peter Lynch Fair Value Related Terms
Hovnanian Enterprises Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's Peter Lynch Fair Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hovnanian Enterprises Peter Lynch Fair Value Chart
HOVVB vs BZH, LEGH, VNJA: Peter Lynch Fair Value Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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.
Hovnanian Enterprises Price-to-Peter-Lynch-Fair-Value vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Price-to-Peter-Lynch-Fair-Value falls into.
Hovnanian Enterprises's EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.56.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
Is Hovnanian Enterprises (HOVVB) Overvalued in 2026?
Based on GuruFocus' analysis, Hovnanian Enterprises stock appears to be overvalued.
The current stock price of $110.00 is trading 1.8% above its estimated GF Value™ of $108.08.
GuruFocus considers Hovnanian Enterprises to be Modestly Undervalued.
Key valuation signals for HOVVB:
Peter Lynch Fair Value: N/A
GF Value™: $108.08 vs. price of $110.00 (1.8% above fair value)
No single metric tells the full story. See the HOVVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations. The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments: Northeast, which includes Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia; Southeast, which includes Florida, Georgia, and South Carolina; and West, which includes Arizona, California, and Texas. The firm generates maximum revenue from the West Segment.
70GF Score
Get the complete analysis for HOVVB
Peter Lynch Fair Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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