Toll Brothers: A Call Option On The Housing Market
By Alex Shadunsky: Toll Brothers (TOL) has had an interesting past five years, trading between $15 and $25 during most of that time. As the economy gets better, Toll might stand to benefit because of the increase in the demand for housing. Here are the six things I looked at while researching the stock:Valuation: Toll Brothers' trailing five-year valuation metrics suggest that the stock is overvalued as all of the metrics are above their respective five-year averages. Toll Brothers' current P/B ratio is 1.5 and it has averaged 1.2 over the past five years with a high of 1.5 and low of 0.9. Toll Brothers' current P/S ratio is 2.6 and it has averaged 1.5 over the past five years with a high of 2.4 and low of 0.6. The trailing five-year P/E range is not very useful because of the tough time home builders have had over the past five years.Complete Story »
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