Pultegroup INC/MI/ (PHM) intrinsic value & 10-year financials

Pultegroup INC/MI/ (PHM) has a Graham intrinsic value of $369.36 per share. At $113.55 on Oct 16, 2026, the stock trades 69% below that value. Over the last 10 fiscal years revenue grew 9.5% a year to $17.3B, with an average return on invested capital of 24.5%.

Graham intrinsic value
$369.36
Share price (Oct 16, 2026)
$113.55
Price vs Graham value
69% below
Market cap
$22.7B
Revenue (FY2025)
$17.3B
Revenue growth (10-yr CAGR)
9.5%
ROIC (10-yr avg)
24.5%
Free cash flow (FY2025)
$1.7B

PHM 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $17.3B $2.2B $11.12 $1.7B — 20.6%
FY2024 $17.9B $3.1B $14.69 $1.6B — 32.1%
FY2023 $16.1B $2.6B $11.72 $2.1B — 31.4%
FY2022 $16.2B $2.6B $11.01 $555.8M — 38.2%
FY2021 $13.9B $1.9B $7.43 $931.2M — 33.7%
FY2020 $11.0B $1.4B $5.18 $1.7B — 23.4%
FY2019 $10.2B $1.0B $3.66 $1.0B — 19.8%
FY2018 $10.2B $1.0B $3.55 $1.4B — 22.8%
FY2017 $8.6B $447.2M $1.44 $631.0M — 10.1%
FY2016 $7.7B $602.7M $1.75 $29.0M — 12.9%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

PulteGroup is a consistent compounder, expanding top-line revenue at 9.5% annually over the past decade.

PulteGroup has earned high returns on invested capital, averaging 31.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, PulteGroup shows that management has aggressively returned capital to shareholders by retiring 41.7% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, PulteGroup is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $369.36 per share.

PHM stock: frequently asked questions

What is the intrinsic value of Pultegroup INC/MI/ (PHM) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, PHM's intrinsic value is about $369.36 per share.

Is PHM stock undervalued?

At $113.55 (close on Oct 16, 2026), PHM trades 69% below its Graham value of $369.36. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Pultegroup INC/MI/ grown?

Revenue went from $7.7B in fiscal 2016 to $17.3B in fiscal 2025, a compound annual growth rate of 9.5%. Net income was $2.2B in fiscal 2025.

Does Pultegroup INC/MI/ generate free cash flow?

Pultegroup INC/MI/ generated $1.7B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is PHM's return on invested capital?

Average ROIC over the last 10 fiscal years was 24.5%, and average return on equity was 22.1%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this PHM data come from?

From Pultegroup INC/MI/'s annual 10-K filings on SEC EDGAR, most recently filed Jul 22, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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