LGIH PE Ratio & Valuation,Is LGIH Overvalued

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 11.26 is considered Fairly compared with the five-year average of 10.63. The fair price of LGI Homes Inc (LGIH) is between 38.64 to 51.29 according to relative valuation methord.

Relative Value

Fair Zone

38.64-51.29

Current Price：43.15

Fair

11.26

24.70

EV/EBITDA

LGI Homes Inc. (LGIH) has a current EV/EBITDA of 24.70. The 5-year average EV/EBITDA is 11.73. The thresholds are as follows: Strongly Undervalued below 2.61, Undervalued between 2.61 and 7.17, Fairly Valued between 16.29 and 7.17, Overvalued between 16.29 and 20.85, and Strongly Overvalued above 20.85. The current Forward EV/EBITDA of 24.70 falls within the Strongly Overvalued range.

22.48

EV/EBIT

LGI Homes Inc. (LGIH) has a current EV/EBIT of 22.48. The 5-year average EV/EBIT is 13.21. The thresholds are as follows: Strongly Undervalued below 4.45, Undervalued between 4.45 and 8.83, Fairly Valued between 17.60 and 8.83, Overvalued between 17.60 and 21.98, and Strongly Overvalued above 21.98. The current Forward EV/EBIT of 22.48 falls within the Strongly Overvalued range.

0.50

LGI Homes Inc. (LGIH) has a current PS of 0.50. The 5-year average PS is 0.99. The thresholds are as follows: Strongly Undervalued below 0.51, Undervalued between 0.51 and 0.75, Fairly Valued between 1.22 and 0.75, Overvalued between 1.22 and 1.46, and Strongly Overvalued above 1.46. The current Forward PS of 0.50 falls within the Strongly Undervalued range.

14.16

P/OCF

LGI Homes Inc. (LGIH) has a current P/OCF of 14.16. The 5-year average P/OCF is 4.75. The thresholds are as follows: Strongly Undervalued below -113.96, Undervalued between -113.96 and -54.60, Fairly Valued between 64.11 and -54.60, Overvalued between 64.11 and 123.47, and Strongly Overvalued above 123.47. The current Forward P/OCF of 14.16 falls within the Historic Trend Line -Fairly Valued range.

-5.82

P/FCF

LGI Homes Inc. (LGIH) has a current P/FCF of -5.82. The 5-year average P/FCF is -34.64. The thresholds are as follows: Strongly Undervalued below -204.64, Undervalued between -204.64 and -119.64, Fairly Valued between 50.36 and -119.64, Overvalued between 50.36 and 135.36, and Strongly Overvalued above 135.36. The current Forward P/FCF of -5.82 falls within the Historic Trend Line -Fairly Valued range.

LGI Homes Inc (LGIH) has a current Price-to-Book (P/B) ratio of 0.46. Compared to its 3-year average P/B ratio of 1.20 , the current P/B ratio is approximately -61.28% higher. Relative to its 5-year average P/B ratio of 1.63, the current P/B ratio is about -71.54% higher. LGI Homes Inc (LGIH) has a Forward Free Cash Flow (FCF) yield of approximately -17.79%. Compared to its 3-year average FCF yield of -9.14%, the current FCF yield is approximately 94.70% lower. Relative to its 5-year average FCF yield of -6.85% , the current FCF yield is about 159.87% lower.

0.46

P/B

Median3y

1.20

Median5y

1.63

-17.79

FCF Yield

Median3y

-9.14

Median5y

-6.85

Competitors Valuation Multiple

The average P/S ratio for LGIH's competitors is 0.67, providing a benchmark for relative valuation. LGI Homes Inc Corp (LGIH) exhibits a P/S ratio of 0.50, which is -25.04% above the industry average. Given its robust revenue growth of -39.15%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LGIH decreased by 51.67% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.53 to 9.20.

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.

-39.15%

651.85M → 396.63M

Revenue Growth

-53.42%

10.67 → 4.97

Margin Expansion

40.90%

6.53 → 9.20

P/E Change

-51.67%

89.28 → 43.15

Mkt Cap Growth

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Frequently Asked Questions

Is LGI Homes Inc (LGIH) currently overvalued or undervalued?

What is LGI Homes Inc (LGIH) fair value?

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. The fair price of LGI Homes Inc (LGIH) is between 38.64 to 51.29 according to relative valuation methord.

How does LGIH's valuation metrics compare to the industry average?

What is the current P/B ratio for LGI Homes Inc (LGIH) as of Jan 08 2026?

As of Jan 08 2026, LGI Homes Inc (LGIH) has a P/B ratio of 0.46. This indicates that the market values LGIH at 0.46 times its book value.

What is the current FCF Yield for LGI Homes Inc (LGIH) as of Jan 08 2026?

As of Jan 08 2026, LGI Homes Inc (LGIH) has a FCF Yield of -17.79%. This means that for every dollar of LGI Homes Inc’s market capitalization, the company generates -17.79 cents in free cash flow.

What is the current Forward P/E ratio for LGI Homes Inc (LGIH) as of Jan 08 2026?

As of Jan 08 2026, LGI Homes Inc (LGIH) has a Forward P/E ratio of 11.26. This means the market is willing to pay $11.26 for every dollar of LGI Homes Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for LGI Homes Inc (LGIH) as of Jan 08 2026?

As of Jan 08 2026, LGI Homes Inc (LGIH) has a Forward P/S ratio of 0.50. This means the market is valuing LGIH at $0.50 for every dollar of expected revenue over the next 12 months.

LGIH Valuation