LGIH Valuation

LGI Homes Inc

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47.400

+0.83(1.782%)1D

Overview
Forecast
Valuation
Earnings

LGIH Relative Valuation

LGIH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LGIH is overvalued; if below, it's undervalued.

Historical Valuation

LGI Homes Inc (LGIH) is now in the Fair zone, suggesting that its current forward PE ratio of 11.43 is considered Fairly compared with the five-year average of 10.50. The fair price of LGI Homes Inc (LGIH) is between 36.75 to 50.27 according to relative valuation methord.

Relative Value

Fair Zone

36.75-50.27

Current Price：47.40

Fair

11.43

Trailing

Forward

20.01

EV/EBITDA

LGI Homes Inc. (LGIH) has a current EV/EBITDA of 20.01. The 5-year average EV/EBITDA is 10.98. The thresholds are as follows: Strongly Undervalued below 3.73, Undervalued between 3.73 and 7.35, Fairly Valued between 14.60 and 7.35, Overvalued between 14.60 and 18.23, and Strongly Overvalued above 18.23. The current Forward EV/EBITDA of 20.01 falls within the Strongly Overvalued range.

21.08

EV/EBIT

LGI Homes Inc. (LGIH) has a current EV/EBIT of 21.08. The 5-year average EV/EBIT is 12.50. The thresholds are as follows: Strongly Undervalued below 4.81, Undervalued between 4.81 and 8.66, Fairly Valued between 16.34 and 8.66, Overvalued between 16.34 and 20.19, and Strongly Overvalued above 20.19. The current Forward EV/EBIT of 21.08 falls within the Strongly Overvalued range.

0.62

LGI Homes Inc. (LGIH) has a current PS of 0.62. The 5-year average PS is 1.01. The thresholds are as follows: Strongly Undervalued below 0.57, Undervalued between 0.57 and 0.79, Fairly Valued between 1.23 and 0.79, Overvalued between 1.23 and 1.45, and Strongly Overvalued above 1.45. The current Forward PS of 0.62 falls within the Undervalued range.

18.59

P/OCF

LGI Homes Inc. (LGIH) has a current P/OCF of 18.59. The 5-year average P/OCF is -0.13. The thresholds are as follows: Strongly Undervalued below -119.17, Undervalued between -119.17 and -59.65, Fairly Valued between 59.39 and -59.65, Overvalued between 59.39 and 118.92, and Strongly Overvalued above 118.92. The current Forward P/OCF of 18.59 falls within the Historic Trend Line -Fairly Valued range.

-13.85

P/FCF

LGI Homes Inc. (LGIH) has a current P/FCF of -13.85. The 5-year average P/FCF is -27.26. The thresholds are as follows: Strongly Undervalued below -214.25, Undervalued between -214.25 and -120.75, Fairly Valued between 66.24 and -120.75, Overvalued between 66.24 and 159.74, and Strongly Overvalued above 159.74. The current Forward P/FCF of -13.85 falls within the Historic Trend Line -Fairly Valued range.

LGI Homes Inc (LGIH) has a current Price-to-Book (P/B) ratio of 0.53. Compared to its 3-year average P/B ratio of 1.26 , the current P/B ratio is approximately -57.86% higher. Relative to its 5-year average P/B ratio of 1.74, the current P/B ratio is about -69.40% higher. LGI Homes Inc (LGIH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -9.52%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -5.75% , the current FCF yield is about -100.00% lower.

0.53

P/B

Median3y

1.26

Median5y

1.74

-16.38

FCF Yield

Median3y

-9.52

Median5y

-5.75

Competitors Valuation Multiple

The average P/S ratio for LGIH's competitors is 0.00, providing a benchmark for relative valuation. LGI Homes Inc Corp (LGIH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -19.75%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Hovnanian Enterprises Inc

Century Communities Inc

United Homes Group Inc

Loss

-3.58%

237.34M

Performance Decomposition

Market capitalization of LGIH decreased by 54.15% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from 7.25 to 7.14.

The secondary factor is the Revenue Growth, contributed -19.75%to the performance.

Overall, the performance of LGIH in the past 1 year is driven by P/E Change. Which is more unsustainable.

-19.75%

602.50M → 483.49M

Revenue Growth

-32.92%

9.72 → 6.52

Margin Expansion

-1.48%

7.25 → 7.14

P/E Change

-54.15%