Is Meritage Homes Corp. overvalued or undervalued?
2025-10-21 12:02:07As of 17 October 2025, the valuation grade for Meritage Homes Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, including a P/E ratio of 6, which is significantly lower than the peer average of 9.16 for similar companies. Additionally, the EV to EBITDA ratio stands at 6.04, while peers like Toll Brothers, Inc. and Taylor Morrison Home Corp. have ratios of 9.45 and 8.98, respectively, suggesting that Meritage Homes is not only lagging behind its competitors but also priced higher relative to its earnings potential. Despite a strong dividend yield of 90.31% and a respectable ROCE of 14.51%, the overall valuation metrics indicate that the stock is not justified at its current price of 70.14. Recent performance shows that while the company outperformed the S&P 500 over the last three years with a return of 101.64% comp...
Read MoreIs Meritage Homes Corp. overvalued or undervalued?
2025-10-20 12:19:56As of 17 October 2025, the valuation grade for Meritage Homes Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 6, which is significantly lower than the peer average of 9.16, and its EV to EBITDA ratio of 6.04, which also lags behind peers like Toll Brothers, Inc. at 9.45 and Taylor Morrison Home Corp. at 8.98. Additionally, the Price to Book Value stands at 0.89, suggesting that the market is not valuing the company's assets highly compared to its peers. In terms of recent performance, Meritage Homes Corp. has seen a 1-week return of 5.41%, outperforming the S&P 500's 1.70%, but it has underperformed over longer periods, with a year-to-date return of -8.80% compared to the S&P 500's 13.30%. Overall, the combination of low valuation ratios and the recent downgrade in valuation grade suggests that Meritage Homes Corp. i...
Read MoreIs Meritage Homes Corp. overvalued or undervalued?
2025-10-19 11:57:34As of 17 October 2025, the valuation grade for Meritage Homes Corp. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios include a P/E ratio of 6, a price to book value of 0.89, and an EV to EBITDA ratio of 6.04, all of which suggest that the stock is trading at a premium compared to its earnings and asset values. In comparison to its peers, Meritage Homes Corp. has a lower P/E ratio than Toll Brothers, Inc. at 11.10 and Taylor Morrison Home Corp. at 10.67, both of which are considered fairly valued or very attractive. The company's recent stock performance shows a 3-year return of 101.64%, which outperformed the S&P 500's 81.19% over the same period, but it has significantly underperformed in the 1-year and year-to-date comparisons, with returns of -30.53% and -8.80%, respectively, compared to the S&P 500's positive returns....
Read MoreIs Meritage Homes Corp. technically bullish or bearish?
2025-09-20 19:20:16As of 9 September 2025, the technical trend for Meritage Homes Corp. has changed from mildly bearish to mildly bullish. The weekly MACD is bullish, while the monthly MACD is mildly bearish, indicating mixed signals across time frames. The daily moving averages are bullish, supporting the mildly bullish stance. However, the weekly and monthly KST are bearish, and the Dow Theory shows a mildly bearish signal on the weekly but mildly bullish on the monthly. The Bollinger Bands reflect a mildly bullish stance weekly but bearish monthly. In terms of performance, Meritage Homes has underperformed the S&P 500 across most periods, with a 1-year return of -24.39% compared to the S&P 500's 17.14%. However, it has shown strong growth over the 3-year period with a return of 106.19% versus the S&P 500's 70.41%. Overall, the current technical stance is mildly bullish, albeit with some mixed indicators....
Read MoreIs Meritage Homes Corp. overvalued or undervalued?
2025-09-20 17:55:08As of 13 August 2025, the valuation grade for Meritage Homes Corp. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 6, which is notably lower than the peer average of approximately 9.15 for companies like Toll Brothers, Inc. (P/E of 11.10) and Taylor Morrison Home Corp. (P/E of 10.67). Additionally, the EV to EBITDA ratio is 6.04, which is also below the peer average, suggesting that the market may not be pricing in the company's potential effectively. In terms of performance, Meritage Homes has underperformed relative to the S&P 500 across multiple time frames, with a one-year return of -24.39% compared to the S&P 500's 17.14%. This trend reinforces the notion that the stock may be overvalued, as it has not delivered returns commensurate with its current v...
Read More





