Toll Brothers, Inc.

OVERVALUEDTOL · NYSE · Consumer Cyclical
TOL·NYSE·Consumer Cyclical
OVERVALUED
Toll Brothers, Inc.
12.9%downside
MARKET PRICE
$141.75
FAIR PRICE
$123.42
MARGIN
$18.33
UNDERVALUEDFAIROVERVALUED
P/E RATIO
10.3x
DIV. YIELD
0.70%
ROE
16.9%
MARKET CAP
$14B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

12.9%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$141.75

FAIR PRICE

$123.42

MARGIN

$18.33

UNDERVALUEDFAIROVERVALUED

P/E Ratio

10.3x

What is P/E? →

Div. Yield

0.70%

ROE

16.9%

Strong

Market Cap

$14B

Large-cap

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FPI RATING

6.0/ 10

Consistent growth trajectory and attractive valuation, but volatile earnings pattern and below-average fundamental quality.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$98.74CONSERVATIVE ENTRY
$123.42FAIR PRICE
$141.75MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$98.74

Fair price × 0.80

DISTANCE

30.3%

Price to entry level

At the current price of $141.75, TOL trades 30.3% above the conservative entry level of $98.74. This entry level represents a 20% margin of safety below the calculated fair price of $123.42 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate TOL's fair price

Toll Brothers, Inc.'s fair price of $123.42 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Cyclical peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $141.75, TOL trades 12.9% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting TOL's risk profile.

RELATIVE · 30%

Comparing TOL's valuation multiples against Consumer Cyclical peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for TOL, weighted by recency and analyst accuracy.

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FAQ

What is the fair price of TOL?+

Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Cyclical peers (30%), and analyst consensus (20%), the fair price for Toll Brothers, Inc. is $123.42. At the current market price of $141.75, TOL trades 12.9% above its calculated fair value.

Is TOL overvalued or undervalued?+

Toll Brothers, Inc. is currently overvalued based on our valuation model. The stock trades at $141.75, which is 12.9% above the fair price of $123.42. The P/E ratio of 10.3x is a key metric in the valuation.

What is the margin of safety for TOL?+

With a 20% margin of safety applied to the fair price of $123.42, the conservative entry level for TOL is $98.74. At the current market price of $141.75, the stock trades 30.3% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is TOL's fair price updated?+

We update fair price calculations for TOL daily after market close. The current fair price of $123.42 incorporates the latest market data and sector multiples.

What factors affect TOL's fair price calculation?+

TOL's fair price of $123.42 is derived from DCF analysis (50% weight), relative valuation against Consumer Cyclical peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 10.3x, ROE of 16.9%, and dividend yield of 0.70%.

Is TOL a good buy right now?+

At $141.75, TOL trades 12.9% above our fair value estimate of $123.42. The stock is currently overvalued. ROE stands at 16.9% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does TOL pay dividends?+

TOL has a dividend yield of 0.70%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.