Meritage Homes Corporation

NYSE:MTH Stock Report

Market Cap: US$5.6b

Meritage Homes Valuation

Is MTH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MTH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MTH ($154.61) is trading below our estimate of fair value ($278.84)

Significantly Below Fair Value: MTH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MTH?

Key metric: As MTH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MTH. This is calculated by dividing MTH's market cap by their current earnings.
What is MTH's PE Ratio?
PE Ratio6.9x
EarningsUS$812.39m
Market CapUS$5.59b

Price to Earnings Ratio vs Peers

How does MTH's PE Ratio compare to its peers?

The above table shows the PE ratio for MTH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
SKY Champion Homes
36.7x21.0%US$5.5b
KBH KB Home
7.9x6.6%US$4.8b
IBP Installed Building Products
19.6x7.7%US$5.0b
MDC M.D.C. Holdings
11.9x8.0%US$4.7b
MTH Meritage Homes
6.9x2.1%US$5.6b

Price-To-Earnings vs Peers: MTH is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does MTH's PE Ratio compare vs other companies in the US Consumer Durables Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
MTH 6.9xIndustry Avg. 10.9xNo. of Companies12PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MTH is good value based on its Price-To-Earnings Ratio (6.9x) compared to the US Consumer Durables industry average (10.9x).

Price to Earnings Ratio vs Fair Ratio

What is MTH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MTH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.9x
Fair PE Ratio13.9x

Price-To-Earnings vs Fair Ratio: MTH is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MTH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$154.61
US$212.46
+37.4%
13.1%US$252.00US$153.00n/a9
Dec ’25US$191.07
US$212.47
+11.2%
14.3%US$252.00US$153.00n/a9
Nov ’25US$183.44
US$214.42
+16.9%
13.5%US$252.00US$153.00n/a10
Oct ’25US$205.40
US$206.32
+0.4%
15.9%US$257.00US$153.00n/a10
Sep ’25US$198.07
US$206.32
+4.2%
15.9%US$257.00US$153.00n/a10
Aug ’25US$195.98
US$212.79
+8.6%
13.1%US$257.00US$160.00n/a8
Jul ’25US$156.15
US$194.00
+24.2%
14.4%US$232.00US$148.00n/a6
Jun ’25US$176.35
US$193.67
+9.8%
14.3%US$232.00US$148.00n/a6
May ’25US$166.55
US$187.03
+12.3%
14.0%US$232.00US$148.00n/a7
Apr ’25US$172.05
US$184.40
+7.2%
10.0%US$219.00US$155.00n/a8
Mar ’25US$159.61
US$184.29
+15.5%
10.3%US$219.00US$155.00n/a7
Feb ’25US$153.56
US$189.14
+23.2%
10.7%US$219.00US$155.00n/a7
Jan ’25US$174.20
US$176.88
+1.5%
10.9%US$207.00US$151.00n/a8
Dec ’24US$146.95
US$164.50
+11.9%
9.0%US$185.00US$138.00US$191.078
Nov ’24US$122.05
US$167.29
+37.1%
8.5%US$185.00US$138.00US$183.447
Oct ’24US$122.39
US$181.43
+48.2%
10.7%US$215.00US$155.00US$205.407
Sep ’24US$141.15
US$176.25
+24.9%
12.9%US$215.00US$140.00US$198.078
Aug ’24US$149.25
US$170.25
+14.1%
14.0%US$215.00US$140.00US$195.988
Jul ’24US$142.27
US$151.88
+6.8%
14.9%US$200.00US$126.00US$156.158
Jun ’24US$118.13
US$151.88
+28.6%
14.9%US$200.00US$126.00US$176.358
May ’24US$125.85
US$142.71
+13.4%
10.8%US$174.00US$126.00US$166.557
Apr ’24US$116.76
US$135.86
+16.4%
12.9%US$174.00US$116.00US$172.057
Mar ’24US$108.24
US$135.86
+25.5%
12.9%US$174.00US$116.00US$159.617
Feb ’24US$109.53
US$113.38
+3.5%
21.0%US$168.00US$90.00US$153.568
Jan ’24US$92.20
US$101.50
+10.1%
16.6%US$140.00US$87.00US$174.208
Dec ’23US$87.05
US$101.50
+16.6%
16.6%US$140.00US$87.00US$146.958

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 03:01
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Meritage Homes Corporation is covered by 30 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Stephen KimBarclays
John LovalloBofA Global Research