US Building: Trump Imposes Additional Tariffs on Canada

研报英文原文证据摘录

US Building: Trump Imposes Additional Tariffs on Canada

Valuation Method and Risk Statement

Manufactured Housing: We use P/E as the primary metric for valuing the manufactured

housing stocks. We apply a P/E multiple to our FY28e EPS in order to value the shares at our PT

date (fiscal yr end ’27e) using 1-year forward EPS (FY28e). We also use EV/EBITDA as a

secondary valuation method for the manufactured housing stocks, using FY27e EV and

FY28e EBITDA.

Homebuilders: We use P/E as the primary metric for valuing the homebuilder stocks, which

we believe is appropriate given low levels of financial leverage and significantly less on

balance sheet land versus prior cycles. We apply a P/E multiple to our ‘27e EPS in order to

value the shares at our PT date (yr end ’26e) using 1-year forward EPS (’27e). We also use P/B

as a secondary valuation method for the homebuilders, using ’26e book value, which is

consistent with using ’26e EV in our Building products EV/EBITDA calculations.

Homebuilder Risks: 1) rising interest rates and home prices could negatively impact

affordability, 2) slowing economic activity could lower consumer confidence, 3) if housing

demand declines, the company could face substantial inventory risks, 4) sustained supply

shortages could impact operating margins and delay deliveries, 5) public health issues could

impact economic activity, company operations, and the global supply chain, 6) weather

conditions and natural disasters could delay development work and increase costs, 7) health

and safety incidents could lead to potential liabilities and reputational damage, 8)

government regulation could increase the cost and availability of land development and

homebuilding projects, 9) debt levels could affect the company’s ability to raise additional