Toll Brothers Valuation

TOL Stock  USD 132.98  3.22  2.36%   
At this time, the company appears to be undervalued. Toll Brothers has a current Real Value of $143.53 per share. The regular price of the company is $132.98. Our model measures the value of Toll Brothers from inspecting the company fundamentals such as Shares Outstanding of 96.38 M, operating margin of 0.17 %, and Return On Equity of 0.18 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Toll Brothers' valuation include:
Price Book
1.6542
Enterprise Value
15.6 B
Enterprise Value Ebitda
8.4218
Price Sales
1.2294
Forward PE
10.0806
Undervalued
Today
132.98
Please note that Toll Brothers' price fluctuation is very steady at this time. Calculation of the real value of Toll Brothers is based on 3 months time horizon. Increasing Toll Brothers' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Toll stock is determined by what a typical buyer is willing to pay for full or partial control of Toll Brothers. Since Toll Brothers is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Toll Stock. However, Toll Brothers' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  132.98 Real  143.53 Target  152.4 Hype  134.78 Naive  140.97
The intrinsic value of Toll Brothers' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Toll Brothers' stock price.
121.37
Downside
143.53
Real Value
145.36
Upside
Estimating the potential upside or downside of Toll Brothers helps investors to forecast how Toll stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Toll Brothers more accurately as focusing exclusively on Toll Brothers' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.501.792.17
Details
Hype
Prediction
LowEstimatedHigh
132.95134.78136.61
Details
Potential
Annual Dividend
LowForecastedHigh
0.620.630.63
Details
19 Analysts
Consensus
LowTarget PriceHigh
138.68152.40169.16
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Toll Brothers' intrinsic value based on its ongoing forecasts of Toll Brothers' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Toll Brothers' closest peers.

Toll Brothers Cash

1.57 Billion

Toll Revenue by Product

Toll Brothers Total Value Analysis

Toll Brothers is at this time estimated to have company total value of 15.61 B with market capitalization of 13.37 B, debt of 2.96 B, and cash on hands of 1.3 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Toll Brothers fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
15.61 B
13.37 B
2.96 B
1.3 B

Toll Brothers Investor Information

About 91.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.65. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Toll Brothers has Price/Earnings To Growth (PEG) ratio of 1.09. The entity recorded earning per share (EPS) of 13.56. The firm last dividend was issued on the 10th of October 2025. Toll Brothers had 2:1 split on the 11th of July 2005. Based on the key indicators related to Toll Brothers' liquidity, profitability, solvency, and operating efficiency, Toll Brothers is performing exceptionally good at this time. It has a great probability to report excellent financial results in January.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.120.22
Way Down
Slightly volatile
Operating Income2.5 B2.3 B
Sufficiently Up
Slightly volatile

Toll Brothers Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Toll Brothers has an asset utilization ratio of 81.14 percent. This suggests that the Company is making $0.81 for each dollar of assets. An increasing asset utilization means that Toll Brothers is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Covid

Toll Brothers Ownership Allocation

Toll Brothers shows a total of 96.38 Million outstanding shares. The majority of Toll Brothers outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Toll Brothers to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Toll Brothers. Please pay attention to any change in the institutional holdings of Toll Brothers as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.

Toll Brothers Profitability Analysis

The company reported the last year's revenue of 10.85 B. Total Income to common stockholders was 1.57 B with profit before taxes, overhead, and interest of 2.86 B.

Toll Brothers Past Distributions to stockholders

About Toll Brothers Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Toll Brothers. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Toll Brothers based exclusively on its fundamental and basic technical indicators. By analyzing Toll Brothers's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Toll Brothers's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Toll Brothers. We calculate exposure to Toll Brothers's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Toll Brothers's related companies.
Last ReportedProjected for Next Year
Gross Profit3.5 B3.6 B
Pretax Profit Margin 0.22  0.23 
Operating Profit Margin 0.22  0.12 
Net Profit Margin 0.13  0.14 
Gross Profit Margin 0.32  0.24 

Toll Brothers Quarterly Retained Earnings

8.98 Billion

Toll Brothers' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Toll Brothers' value is low or high relative to the company's performance and growth projections. Determining the market value of Toll Brothers can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Toll Brothers represents a small ownership stake in the entity. As a stockholder of Toll, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Toll Brothers Dividends Analysis For Valuation

At this time, Toll Brothers' Dividend Yield is quite stable compared to the past year. Dividend Payout Ratio is expected to rise to 0.09 this year, although the value of Dividends Paid is projected to rise to (79.9 M). . At this time, Toll Brothers' Retained Earnings are quite stable compared to the past year. Price Earnings Ratio is expected to rise to 10.42 this year, although the value of Retained Earnings Total Equity will most likely fall to about 4.4 B.
Last ReportedProjected for Next Year
Dividends Paid-84.1 M-79.9 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.07  0.09 
Dividend Paid And Capex Coverage Ratio 5.44  5.06 
There are various types of dividends Toll Brothers can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Toll shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Toll Brothers directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Toll pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Toll Brothers by the value of the dividends paid out.

Toll Brothers Growth Indicators

Investing in growth stocks can be very risky. If the company such as Toll Brothers does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding104.7 M
Quarterly Earnings Growth Y O Y0.036
Forward Price Earnings10.0806

Toll Brothers Current Valuation Indicators

Toll Brothers' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Toll Brothers' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Toll Brothers, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Toll Brothers' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Toll Brothers' worth.
When determining whether Toll Brothers is a strong investment it is important to analyze Toll Brothers' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Toll Brothers' future performance. For an informed investment choice regarding Toll Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Toll Brothers. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For more information on how to buy Toll Stock please use our How to buy in Toll Stock guide.
You can also try the AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Toll Brothers. If investors know Toll will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Toll Brothers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.036
Dividend Share
0.96
Earnings Share
13.56
Revenue Per Share
108.532
Quarterly Revenue Growth
0.08
The market value of Toll Brothers is measured differently than its book value, which is the value of Toll that is recorded on the company's balance sheet. Investors also form their own opinion of Toll Brothers' value that differs from its market value or its book value, called intrinsic value, which is Toll Brothers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Toll Brothers' market value can be influenced by many factors that don't directly affect Toll Brothers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Toll Brothers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Toll Brothers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Toll Brothers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.