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 Overvalued zone, suggesting that its current forward PE ratio of 13.91 is considered Overvalued compared with the five-year average of 10.56. The fair price of LGI Homes Inc (LGIH) is between 40.70 to 53.50 according to relative valuation methord. Compared to the current price of 54.15 USD , LGI Homes Inc is Overvalued By 1.21%.
Relative Value
Fair Zone
40.70-53.50
Current Price：54.15
1.21%
Overvalued
13.10
PE
1Y
3Y
5Y
Trailing
Forward
27.37
EV/EBITDA
LGI Homes Inc. (LGIH) has a current EV/EBITDA of 27.37. The 5-year average EV/EBITDA is 11.44. The thresholds are as follows: Strongly Undervalued below 2.97, Undervalued between 2.97 and 7.20, Fairly Valued between 15.67 and 7.20, Overvalued between 15.67 and 19.90, and Strongly Overvalued above 19.90. The current Forward EV/EBITDA of 27.37 falls within the Strongly Overvalued range.
24.66
EV/EBIT
LGI Homes Inc. (LGIH) has a current EV/EBIT of 24.66. The 5-year average EV/EBIT is 12.96. The thresholds are as follows: Strongly Undervalued below 4.50, Undervalued between 4.50 and 8.73, Fairly Valued between 17.19 and 8.73, Overvalued between 17.19 and 21.42, and Strongly Overvalued above 21.42. The current Forward EV/EBIT of 24.66 falls within the Strongly Overvalued range.
0.67
PS
LGI Homes Inc. (LGIH) has a current PS of 0.67. The 5-year average PS is 0.99. The thresholds are as follows: Strongly Undervalued below 0.53, Undervalued between 0.53 and 0.76, Fairly Valued between 1.22 and 0.76, Overvalued between 1.22 and 1.46, and Strongly Overvalued above 1.46. The current Forward PS of 0.67 falls within the Undervalued range.
18.38
P/OCF
LGI Homes Inc. (LGIH) has a current P/OCF of 18.38. The 5-year average P/OCF is 3.63. The thresholds are as follows: Strongly Undervalued below -116.09, Undervalued between -116.09 and -56.23, Fairly Valued between 63.50 and -56.23, Overvalued between 63.50 and 123.36, and Strongly Overvalued above 123.36. The current Forward P/OCF of 18.38 falls within the Historic Trend Line -Fairly Valued range.
-7.55
P/FCF
LGI Homes Inc. (LGIH) has a current P/FCF of -7.55. The 5-year average P/FCF is -32.43. The thresholds are as follows: Strongly Undervalued below -207.44, Undervalued between -207.44 and -119.94, Fairly Valued between 55.08 and -119.94, Overvalued between 55.08 and 142.59, and Strongly Overvalued above 142.59. The current Forward P/FCF of -7.55 falls within the Historic Trend Line -Fairly Valued range.
LGI Homes Inc (LGIH) has a current Price-to-Book (P/B) ratio of 0.60. Compared to its 3-year average P/B ratio of 1.22 , the current P/B ratio is approximately -50.70% higher. Relative to its 5-year average P/B ratio of 1.66, the current P/B ratio is about -63.81% 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 -9.24%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -6.46% , the current FCF yield is about -100.00% lower.
0.56
P/B
Median3y
1.22
Median5y
1.66
-13.70
FCF Yield
Median3y
-9.24
Median5y
-6.46
Competitors Valuation Multiple
The average P/S ratio for LGIH's competitors is , 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 -39.15%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LGIH decreased by 43.39% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.48 to 11.16.
The secondary factor is the Revenue Growth, contributed -39.15%to the performance.
Overall, the performance of LGIH in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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