Is LGI Homes, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for LGI Homes, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, including a P/E ratio of 7, an EV to EBITDA of 14.45, and a Price to Book Value of 0.62. In comparison to peers, Toll Brothers, Inc. has a P/E of 11.10 and an EV to EBITDA of 9.45, while Taylor Morrison Home Corp. shows a more attractive P/E of 10.67 and an EV to EBITDA of 8.98.
Recent performance highlights the disparity in returns, with LGI Homes experiencing a 1-year return of -60.14% compared to the S&P 500's 14.08%, reinforcing the notion that the stock is overvalued relative to its benchmark.