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Lennar Corporation — Intrinsic Value & Fair Price

LEN
NYSEConsumer CyclicalResidential ConstructionCIK 0000920760lennar.comAbout LEN
Last close · Oct 16, 202677.08−0.61 (−0.79%)
Market cap$18.3B
Model value · DCF · Perpetuity growth · 5y
234.47
Lennar closed at $77.08 — undervalued by 67% vs model.
162.67the model's range438.95

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
38.87 – 242.77
Wall St. target
69.50 11% above
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.59%
Past 2 years
low 0.94%high 2.72%
Dividends per share, a year at a time
$0.97Oct ’21$1.45Oct ’22$1.45Oct ’23$1.94Oct ’24$2.00Oct ’25$2.00TTM
Dividends / free cash flow, FY2025
1848.5%
Raised
2 years in a row
Growth, 5 yrs
15.6% a year
Last change
+3.3% · Jan 2025
Every payment, with ex-dates · latest $0.50, paid Oct 22, 2026

Research on LEN

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How it is valued

Valued asCyclical
Revenue declining (~-0% recent)Moderate margins (6% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
9.7×
EV / EBITDA
6.9×
FCF yield
0.1%
Dividend yield, TTM
2.59%
Beta
1.38
Cost of capital (WACC)
8.72%
Full financials

Analyst actions

third-party, quoted
10-07Wells Fargo · target75.00
10-01Morgan Stanley · target65.00
09-18RBC Capital · target69.00
06-09Keefe, Bruyette & Woods · “Underperform” from “Market Perform”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs DHI

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just LEN. No account.

About Lennar

Lennar Corporation, an influential homebuilder in the United States, operates primarily under its widely recognized Lennar brand, alongside its various subsidiaries. The company structures its diverse business initiatives across several distinct divisions: regional homebuilding segments (East, Central, Texas, and West), a Financial Services arm, a Multifamily property development unit, and a broader "Lennar Other" category. At the heart of its operations, Lennar is deeply involved in the creation and sale of single-family homes, encompassing both attached and detached designs. Its activities also span the acquisition, development, and subsequent sale of land designated for residential use, in addition to the comprehensive development, construction, and ongoing management of rental properties in the multifamily sector. Expanding beyond physical construction, Lennar provides essential services such as residential mortgage financing, title protection, and closing services for its clientele and other interested parties. It also actively originates and divests securitized commercial mortgage loans. Furthermore, the corporation participates in strategic fund investment endeavors. Lennar's extensive customer base primarily caters to first-time purchasers, individuals seeking to upgrade their homes, active adult communities, and the luxury housing market. This enterprise, founded in 1954, is officially based in Miami, Florida.

CEO
Stuart A. Miller
Headquarters
Miami, FL
Employees
12,532
IPO
1980-03-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.