Toll Brothers Inc (TOL)
Fair ValueFundamental
80
Price
$134.75
Market Cap
$12.58B
Part 1 · What the company is worth
Overview
Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, rents apartments and student housing communities. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$10.97B
Fiscal year ended 10/31/2025
Net Income
$1.35B
Fiscal year ended 10/31/2025
Free Cash Flow
$1.03B
Total Equity
$8.27B
Total Liabilities
$6.23B
Current Ratio
3.90
Interest Coverage
-
Debt/EBITDA
0.58
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$160.85
Current Price
$134.75
Margin of Safety
+16.2%
Fair Value Range
$127.08 - $194.61
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
10.81
ROE
16.3%
P/B Ratio
1.46
P/FCF
11.39
Gross Margin
25.1%
ROIC
-
Profitability Radar
Value Creation (Economic Moat)
ROIC
-
WACC
10.8%
ROIC − WACC
-
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- Price CAGR 15.85%
- P/FCF 11.39
- P/B Ratio 1.46
- Debt/Equity ratio
- Operating Margin 15.7%
- Positive Free Cash Flow
- CapEx intensity
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- ROE 14.2%
- Revenue Growth 5Y 9.2%
- Analyst Consensus 74% Buy
- PEG Ratio 0.33
- Earnings Quality (OCF/NI) 0.99
- Share Dilution -4.6%
Failed (4)
- Gross Margin 25.1%
- DCF valuation (Fairly valued)
- Earnings Surprise avg 0.2%
- Piotroski F-Score 3/9
Unavailable (5)
- ROIC NaN%
- Dividend Payout NaN%
- Current Ratio
- Interest Coverage
- Net Margin Trend (invalid data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Douglas C. Yearley Jr. | Executive Chairman | 65 |
| Mr. Martin P. Connor CPA | Senior Advisor | 61 |
| Mr. Karl K. Mistry | CEO & Director | 44 |
| Mr. Seth J. Ring | COO & President | 44 |
| Mr. Gregg L. Ziegler | Executive VP & CFO | 52 |
| Ms. Erica J. Mainardi | SVP & Chief Accounting Officer | 43 |
| Mr. John Critikos | Chief Information Officer & Senior VP | - |
| Mr. Timothy J. Hoban J.D. | Chief Compliance Officer, General Counsel & Senior VP | - |
| Ms. Wendy L. Marlett | Executive VP & Chief Marketing Officer | 61 |
| Ms. Kellie Hall | Chief Human Resources Officer | - |
Audit Risk
3
Board Risk
5
Compensation Risk
3
Shareholder Rights Risk
2
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-12-19
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-28
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-18
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for TOL, sourced from Markets Gazette.
- 6/12/2026POSITIVEBuy Toll, Sell Lennar as Rich Homebuyers Outpace First-Timers
Toll Brothers Inc. is favored over Lennar Corp. by one Wall Street analyst, who suggests that a strong economy benefiting wealthy buyers makes high-end homebuilders a more attractive investment. This perspective implies that Toll Brothers, which caters to a more affluent demographic, is better positioned to capitalize on current economic conditions than entry-level focused builders like Lennar. Investors looking to gain exposure to the housing market may consider this divergence, with the analyst's view pointing towards potential outperformance for luxury segment developers.
- 5/20/2026NEUTRALToll Brothers Q2 2026 Earnings Call: Complete Transcript
Toll Brothers Inc. released its Q2 2026 Earnings Call Transcript on May 20, 2026. The transcript provides a detailed account of the company's financial performance, strategic initiatives, and outlook for the upcoming quarters. Investors can analyze management's commentary on market conditions, housing demand, construction costs, and future guidance. While the transcript itself is informational, its value lies in the insights it offers for assessing the company's operational efficiency and potential for future profitability in the homebuilding sector.
- 5/19/2026POSITIVEToll Brothers Up As Luxury-Home Orders Hit Highest in Two Years
Toll Brothers Inc. (TOL) saw its shares climb in post-market trading following a strong second-quarter earnings report. The luxury homebuilder surpassed analyst profit expectations and consequently elevated its full-year financial outlook. This positive performance is underpinned by a significant increase in luxury-home orders, reaching the highest level in two years. Investors are likely encouraged by the company's robust demand in the high-end housing market and its improved forward-looking guidance, suggesting resilience and potential for continued growth.
- 5/19/2026NEUTRALToll Brothers Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
Toll Brothers is set to report its Q2 earnings on May 19th, with analysts forecasting $2.58 earnings per share and $2.42 billion in revenue. The company's stock experienced a 4.4% decline on Monday, preceding the earnings announcement. Recent analyst ratings show mixed sentiment, with JP Morgan upgrading from Underweight to Neutral in March 2022 and B of A Securities moving from Underperform to Buy in February 2022, while Barclays maintained an Underweight rating. Investors will be closely watching the earnings report for guidance on future performance and the housing market outlook.
via Markets Gazette