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 9.71 is considered Fairly compared with the five-year average of 6.68. The fair price of Meritage Homes Corp (MTH) is between 46.01 to 68.68 according to relative valuation methord.
Relative Value
Fair Zone
46.01-68.68
Current Price：64.78
Fair
9.71
PE
1Y
3Y
5Y
Trailing
Forward
8.43
EV/EBITDA
Meritage Homes Corp. (MTH) has a current EV/EBITDA of 8.43. The 5-year average EV/EBITDA is 5.29. The thresholds are as follows: Strongly Undervalued below 2.02, Undervalued between 2.02 and 3.66, Fairly Valued between 6.93 and 3.66, Overvalued between 6.93 and 8.56, and Strongly Overvalued above 8.56. The current Forward EV/EBITDA of 8.43 falls within the Overvalued range.
9.32
EV/EBIT
Meritage Homes Corp. (MTH) has a current EV/EBIT of 9.32. The 5-year average EV/EBIT is 5.68. The thresholds are as follows: Strongly Undervalued below 2.23, Undervalued between 2.23 and 3.96, Fairly Valued between 7.41 and 3.96, Overvalued between 7.41 and 9.14, and Strongly Overvalued above 9.14. The current Forward EV/EBIT of 9.32 falls within the Strongly Overvalued range.
66.74
PS
Meritage Homes Corp. (MTH) has a current PS of 66.74. The 5-year average PS is 1.51. The thresholds are as follows: Strongly Undervalued below -12.57, Undervalued between -12.57 and -5.53, Fairly Valued between 8.55 and -5.53, Overvalued between 8.55 and 15.60, and Strongly Overvalued above 15.60. The current Forward PS of 66.74 falls within the Strongly Overvalued range.
19.47
P/OCF
Meritage Homes Corp. (MTH) has a current P/OCF of 19.47. The 5-year average P/OCF is 22.81. The thresholds are as follows: Strongly Undervalued below -22.67, Undervalued between -22.67 and 0.07, Fairly Valued between 45.56 and 0.07, Overvalued between 45.56 and 68.30, and Strongly Overvalued above 68.30. The current Forward P/OCF of 19.47 falls within the Historic Trend Line -Fairly Valued range.
-35.60
P/FCF
Meritage Homes Corp. (MTH) has a current P/FCF of -35.60. The 5-year average P/FCF is 8.43. The thresholds are as follows: Strongly Undervalued below -49.33, Undervalued between -49.33 and -20.45, Fairly Valued between 37.31 and -20.45, Overvalued between 37.31 and 66.19, and Strongly Overvalued above 66.19. The current Forward P/FCF of -35.60 falls within the Undervalued range.
Meritage Homes Corp (MTH) has a current Price-to-Book (P/B) ratio of 0.89. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately -22.09% higher. Relative to its 5-year average P/B ratio of 1.18, the current P/B ratio is about -24.87% higher. Meritage Homes Corp (MTH) has a Forward Free Cash Flow (FCF) yield of approximately -5.38%. Compared to its 3-year average FCF yield of 3.74%, the current FCF yield is approximately -243.60% lower. Relative to its 5-year average FCF yield of 2.97% , the current FCF yield is about -281.08% lower.
0.89
P/B
Median3y
1.14
Median5y
1.18
-5.38
FCF Yield
Median3y
3.74
Median5y
2.97
Competitors Valuation Multiple
The average P/S ratio for MTH's competitors is 143.90, providing a benchmark for relative valuation. Meritage Homes Corp Corp (MTH) exhibits a P/S ratio of 66.74, which is -53.62% 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 32.12% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.30 to 8.90.
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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