CrossingWallStreet.com: P/E Ratio of the Hombuilders

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June 20, 2006 P/E Ratio of the Hombuilders

Despite making huge profits, homebuilding stocks have been pummeled lately. Check out how low some of these P/E ratios are:

Ticker	Company Name	Market Cap (bil)	P/E Ratio
DHI	D R HORTON INC	$7.51	4.77
PHM	PULTE HOMES, INC.	$7.13	4.74
LEN	LENNAR CP CL A	$7.03	5.07
CTX	CENTEX CP	$5.84	4.96
KBH	KB HOME	$4.17	4.42
TOL	TOLL BROTHERS INC	$4.08	5.15
NVR	N V R L P	$2.97	5.45
MDC	M D C HOLDINGS	$2.30	4.58
RYL	RYLAND GROUP INC	$2.01	4.55
BZH	BEAZER HOMES USA INC	$1.86	4.62
HOV	HOVNANIAN ENT INC	$1.79	4.09
SPF	STANDARD PACIFIC LP	$1.72	3.97
HXM	DESARROLLADORA HOMEX	$1.52	15.25
MTH	MERITAGE HOMES CORP	$1.23	4.26
BHS	BROOKFIELD HOMES	$0.87	4.45
TOA	TECHNICAL OLYMPIC	$0.81	3.33
WCI	WCI COMMUNITIES INC	$0.80	4.03
CHB	CHAMPION ENTERPRISES	$0.72	15.16

This is, of course, trailing earnings. The profits are going to be a little harder to come by next year, and the year after.

Homebuilding is the ultimate boom-and-bust industry--it's all about timing. Don't even think about buying a homebuilder until the last person has given up on the industry. Here's how the sector has performed over the last three years:

Posted by edelfenbein at June 20, 2006 6:28 AM