Zacks reported today on five home building companies with the lowest Price to Earnings (P/E) ratios. Standard Pacific (NYSE:SPF) has the lowest with a P/E of 16.1x. Lennar (NYSE:LEN) is second with a P/E of 20.8x. NVR Inc (NYSE:NVR) followed with a P/E of 22.0x. Cavco Industries (NASDAQ:CVCO) came in fourth lowest with a P/E of 82.0x. Toll Brothers (NYSE:TOL) rounds out the group with a P/E of 157.1x. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more costly when compared to one with a lower P/E ratio. Cavco released it quarterly report yesterday and is part of our Daily Business News manufactured housing stock market report.

(image credit: Cavco Corporate Logo)