I used to trade BZH at 1 times book in 2004 with a PE of 6
I remember in 2004 when the bubble was in full force, Bzh could barely get above book value at times. In mid 2004 it had corrected back toward $60 (looks like 150 on the chart split adjusted ). There were half the shares as there are now. It had amazing balance sheet with nearly a billion in equity, owed 10's of thousands of lots at carrying prices below market on the balance sheet. And had a PE of around 6. If you applied a similar valuation to todays company you would get a stock price of around $4 or so. Consider forward book value after adjusting for $4 in future losses over the next 4 quarters is around $6/share book value. Then makes sense to adjust this down to about $4/share based on the balance sheet being so much worse than it was historically. I will be generous and put a $12 target price on this stock. LOL. That would be triple the 2004 valuation.