Cavco Shares Movin’ On Up

FinancialNewsNetwork reports Cavco Industries has the second lowest enterprise value to EBITDA (EV/EBITDA) ratio in the homebuilding industry. This formula is valuable in measuring comparable companies, and the lower the ratio the more the company is undervalued. Cavco has a ratio of 29.70, well above NVR’s 10.48, but below DR Horton at 34.91. Shares of Cavco have traded between $28.43 and $49.04 over the past year, and are now at $43.51, 53 percent above the low price. The past week has seen the 200 day moving average (MA) rise 0.3 percent and the 50 day MA increase 2.5 percent.

(Graphic credit: Cavco Ind.)

 

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