What is Lennar Corporation (LEN) DCF Fair Value and Intrinsic Value in 2026?

Lennar Corporation (LEN) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Lennar Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Lennar Corporation operates in the Consumer Cyclical sector (Residential Construction) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Lennar Corporation's financial health rating and Piotroski F-Score?

Lennar Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Lennar Corporation (LEN) for quarterly SEC filing thesis breaks?

LocalAlpha audits Lennar Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksLEN

LEN

Lennar CorporationConsumer Cyclical / Residential ConstructionINTACT

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding South Central, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title insurance, and closing services for home buyers and others, as well as originating and selling securitization commercial mortgage loans. In addition, the company is involved in fund investment activities. It primarily serves first-time, move-up, active adult, and luxury homebuyers. The company was founded in 1954 and is based in Miami, Florida.

Share Price

$79.86

52W: $76.63 - $140

DCF Fair Value

$76.44

-4.5% Premium

Thesis Hub

P/E (TTM)

12.5x

ROIC

Operating Margin

5.3%

FCF Yield

5.6%

Debt / Equity

0.29x

Piotroski Score

6/9

Altman Z-Score

5.32

Market Cap

$19.2B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($76.44)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$76.44

MOS Buy Target (-25%)

$57.33

Valuation Overlays: DCF Fair Value ($76.44) 25% MOS Buy Target ($57.33) Revised Graham ($96.50) Graham Number ($113.51)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$79.86

DCF Fair Value

$76.56

-4.3% Premium

Starting Free Cash Flow ($M)$1,078M

$100M$1,078M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$4,300M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$8.9B

PV of Terminal Value

$11.6B

Implied Enterprise Value

$20.5B

Implied Equity Value

$16.2B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,135	$1,195	$1,259	$1,325	$1,396	$1,458	$1,524	$1,593	$1,664	$1,739
Present Value (PV)	$1,041	$1,006	$972	$939	$907	$870	$834	$799	$766	$735

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number+29.6% MoS

$113.51

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $6.38BVPS: $89.75

Revised Graham Formula+17.2%

$96.50

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings6.1% Yield

$4.85 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.0BYield: 6.1%

Reverse DCF: Market Growth Expectation

MODEST BARRIER

2.4% CAGR (Next 10 Yrs)

At the current price of $79.86, the market is assuming the business will compound Free Cash Flow at 2.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil LEN with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Lennar Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 5.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Lennar Corporation (LEN) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Lennar Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Lennar Corporation has an estimated DCF intrinsic fair value of $76.44 per share compared to its current market price of $79.86. This represents an estimated 4.5% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $113.51.