Is Toll Brothers, Inc. (TOL) Overvalued?
We dive into why Toll Brothers, Inc. (TOL) could be considered overvalued on 2026-07-22, based on AAII’s Value Score and Grade.Jenna Brashear
A+ Stock Grade Summary:
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COMPANY SUMMARY
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.
Commentary & Analysis
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As of Thursday, June 18, Toll Brothers, Inc.’s TOL share price has surged by 5.06%, which has investors questioning if this is right time to sell.Cynthia McLaughlin
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Financial Summary
| Share Statistics | TOL | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $13,636.5 | $1,544.9 | 81% |
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| Shares Out (Mil) | 95.8 | 27.5 | 61% |
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| Institutional Ownership | 99.2% | 66.5% | 86% |
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| Float (Mil) | 92.7 | 42.6 | 60% |
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| Beta | 1.37 | 1.19 | 78% |
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| Avg Daily Volume (000s) | 863 | 88 | 68% |
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| Price Change (52-week) |
22.1% | 76.5% | 63% |
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| Growth | TOL | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 9.2% | 3.6% | 55% |
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| Net Income (5yr) | 24.7% | (0.3%) | 79% |
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| EPS (5yr) | 31.7% | 0.3% | 82 |
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| Dividends (5yr) | 17.4% | 0.0% | 79% |
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| Cash Flow (5yr) | (20.5%) | (16.2%) | 32% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 13 | 14 | 14 | |
| Current EPS | $2.905 | $12.795 | $14.115 | |
| Month Ago EPS | $2.905 | $12.795 | $14.115 | |
| # Rev Up | 1 | 0 | 0 | |
| # Rev Down | 0 | 1 | 1 | |
| Three Months Ago EPS | $3.435 | $12.772 | $14.247 | |
| Year/Year Chg | 6.8% | (5.2%) | 19.2% | |
| Financials | TOL | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $11,045 | $2,127 | 85% |
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| Net Income (TTM) (Mil) | $1,288 | $57 | 89% |
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| EPS (TTM) | $13.344 | $0.700 | 96% |
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| Operating Cash Flow (TTM) (Mil) | $1,312 | $132 | 84% |
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| Net Cash Flow (TTM) (Mil) | $410 | $3 | 90% |
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| Long-Term Debt (Q1) (Mil) | $2,751 | $292 | 79% |
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| Enterprise Value (Q1) (Mil) | $16,379 | $2,399 | 81% |
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| Valuation | TOL | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.61 | 1.15 | 43% |
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| P/E | 11.0 | 13.7 | 19% |
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| Dividend Yield | 0.7% | 0.0% | 64% |
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| PEG (5yr hist) | 0.3 | 1.1 | 16% |
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| Ratios | TOL | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 25.2% | 26.3% | 28% |
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| Net Margin | 11.7% | 4.2% | 67% |
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| ROA | 9.0% | 3.9% | 85% |
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| ROE | 15.7% | 7.4% | 73% |
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| Liabilities to Assets | 41.6% | 45.4% | 32% |
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| F-Score | 6 | 5 | 69% |
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Passing Stock Screens
As of 7/31/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Graham--Defensive Investor (Non-Utility) Screen
Factors: Yield, Value, Quality
Credited as one of the fathers of in-depth security analysis, Graham's approach focuses on the concept of intrinsic value.
| Performance Since Inception: | 11.8% |
| +/- S&P 500: | +4.3 |
GURU STRATEGY
Graham--Enterprising Investor Revised
Factors: Yield, Value, Quality, Industry/Sector
Credited as one of the fathers of in-depth security analysis, Graham's approach focuses on the concept of intrinsic value.
| Performance Since Inception: | 13.9% |
| +/- S&P 500: | +6.4 |
GURU STRATEGY
Neff Screen
Factors: Value, Growth
An approach using a stringent contrarian viewpoint—finding undervalued, out-of-favor stocks in the bargain basement that have an optimistic future.
| Performance Since Inception: | 14.6% |
| +/- S&P 500: | +7.1 |
