MTH Relative Valuation
MTH'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, MTH is overvalued; if below, it's undervalued.
Historical Valuation
Meritage Homes Corp (MTH) is now in the Fair zone, suggesting that its current forward PE ratio of 10.55 is considered Fairly compared with the five-year average of 6.74. The fair price of Meritage Homes Corp (MTH) is between 53.27 to 77.21 according to relative valuation methord.
Relative Value
Fair Zone
53.27-77.21
Current Price：72.53
Fair
10.55
PE
1Y
3Y
5Y
Trailing
Forward
9.32
EV/EBITDA
Meritage Homes Corp. (MTH) has a current EV/EBITDA of 9.32. The 5-year average EV/EBITDA is 5.39. The thresholds are as follows: Strongly Undervalued below 1.95, Undervalued between 1.95 and 3.67, Fairly Valued between 7.11 and 3.67, Overvalued between 7.11 and 8.83, and Strongly Overvalued above 8.83. The current Forward EV/EBITDA of 9.32 falls within the Strongly Overvalued range.
10.24
EV/EBIT
Meritage Homes Corp. (MTH) has a current EV/EBIT of 10.24. The 5-year average EV/EBIT is 5.80. The thresholds are as follows: Strongly Undervalued below 2.12, Undervalued between 2.12 and 3.96, Fairly Valued between 7.63 and 3.96, Overvalued between 7.63 and 9.47, and Strongly Overvalued above 9.47. The current Forward EV/EBIT of 10.24 falls within the Strongly Overvalued range.
0.86
PS
Meritage Homes Corp. (MTH) has a current PS of 0.86. The 5-year average PS is 0.76. The thresholds are as follows: Strongly Undervalued below 0.39, Undervalued between 0.39 and 0.58, Fairly Valued between 0.95 and 0.58, Overvalued between 0.95 and 1.13, and Strongly Overvalued above 1.13. The current Forward PS of 0.86 falls within the Historic Trend Line -Fairly Valued range.
24.14
P/OCF
Meritage Homes Corp. (MTH) has a current P/OCF of 24.14. The 5-year average P/OCF is 23.16. The thresholds are as follows: Strongly Undervalued below -20.85, Undervalued between -20.85 and 1.16, Fairly Valued between 45.16 and 1.16, Overvalued between 45.16 and 67.16, and Strongly Overvalued above 67.16. The current Forward P/OCF of 24.14 falls within the Historic Trend Line -Fairly Valued range.
-142.07
P/FCF
Meritage Homes Corp. (MTH) has a current P/FCF of -142.07. The 5-year average P/FCF is 4.73. The thresholds are as follows: Strongly Undervalued below -69.93, Undervalued between -69.93 and -32.60, Fairly Valued between 42.05 and -32.60, Overvalued between 42.05 and 79.38, and Strongly Overvalued above 79.38. The current Forward P/FCF of -142.07 falls within the Strongly Undervalued range.
Meritage Homes Corp (MTH) has a current Price-to-Book (P/B) ratio of 0.97. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately -15.35% higher. Relative to its 5-year average P/B ratio of 1.18, the current P/B ratio is about -17.93% higher. Meritage Homes Corp (MTH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.69%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.77% , the current FCF yield is about -100.00% lower.
0.97
P/B
Median3y
1.14
Median5y
1.18
-4.80
FCF Yield
Median3y
3.69
Median5y
2.77
Competitors Valuation Multiple
The average P/S ratio for MTH's competitors is , providing a benchmark for relative valuation. Meritage Homes Corp Corp (MTH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -10.81%, 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 MTH decreased by 5.69% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.52 to 9.67.
The secondary factor is the Revenue Growth, contributed -10.81%to the performance.
Overall, the performance of MTH in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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