Toll Brothers Shares Trade at 9.98x P/E and 0.80x PEG with $155.22 Target

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Toll Brothers has only three 2,500+ sq ft townhomes left at 568 West in Atlanta, priced from mid-$600k, each offering rooftop terraces and two-car garages. Its shares trade at a P/E of 9.98x and PEG of 0.80x, with a DDM-derived target of $155.22 reflecting strong luxury demand.

1. Last Units at 568 West

Only three move-in ready townhomes remain at 568 West in Atlanta’s West Midtown, each featuring four-story layouts, over 2,500 square feet of living space, private rooftop terraces and two-car garages. Homes start in the mid-$600,000 range and are located less than a mile from Atlantic Station’s shopping and dining districts.

2. Valuation and Price Target

Toll Brothers stock trades at a price-to-earnings ratio of 9.98x and a price/earnings-to-growth ratio of 0.80x, reflecting a valuation discount relative to peers. A dividend discount model analysis yields a target share price of $155.22, indicating potential upside based on current fundamentals.

3. Luxury Market Demand

Resilient demand from affluent homebuyers and geographic diversification across more than 60 U.S. markets underpin the company’s stability. Prudent debt management and a track record of delivering high-end features support the bullish outlook on luxury residential developments.

Sources

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