LGI Homes (FRA:LG1) Cyclically Adjusted PB Ratio: (As of Aug. 08, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:LG1 LGI Homes Inc FRA:LG1
68 GF Score
Price €51.20
GF Value €58.04
Valuation Modestly Undervalued
! 8 Warning Signs
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What is LGI Homes Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


LGI Homes  (FRA:LG1) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


LGI Homes Cyclically Adjusted PB Ratio Related Terms


LGI Homes Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for LGI Homes's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

LGI Homes Cyclically Adjusted PB Ratio Chart

LGI Homes Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 2.93 3.41 1.89 0.77

LGI Homes Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.99 0.95 0.77 0.67 1.04

FRA:LG1 vs DFH, BXBL, BZH: Cyclically Adjusted PB Ratio Comparison

For the Residential Construction subindustry, LGI Homes's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LGI Homes Cyclically Adjusted PB Ratio vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where LGI Homes's Cyclically Adjusted PB Ratio falls into.


FRA:LG1
68GF Score
LGI Homes Inc FRA:LG1
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

LGI Homes Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

LGI Homes's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, LGI Homes's adjusted Book Value per Share data for the three months ended in Jun. 2026 was:

Adj_Book=Book Value per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=79.517/333.9520*333.9520
=79.517

Current CPI (Jun. 2026) = 333.9520.

LGI Homes Quarterly Data

Book Value per Share CPI Adj_Book
201609 13.839 241.428 19.143
201612 15.801 241.432 21.856
201703 16.156 243.801 22.130
201706 16.731 244.955 22.810
201709 17.239 246.819 23.325
201712 18.947 246.524 25.666
201803 18.609 249.554 24.902
201806 21.508 251.989 28.504
201809 23.104 252.439 30.564
201812 25.392 251.233 33.752
201903 26.131 254.202 34.329
201906 27.979 256.143 36.478
201909 30.743 256.759 39.986
201912 29.996 256.974 38.981
202003 31.026 258.115 40.142
202006 32.519 257.797 42.125
202009 34.253 260.280 43.948
202012 37.474 260.474 48.045
202103 41.055 264.877 51.761
202106 43.373 271.696 53.311
202109 46.777 274.310 56.948
202112 51.650 278.802 61.867
202203 54.587 287.504 63.406
202206 61.538 296.311 69.355
202209 69.689 296.808 78.410
202212 66.525 296.797 74.853
202303 66.448 301.836 73.518
202306 67.855 305.109 74.270
202309 71.682 307.789 77.775
202312 72.173 306.746 78.574
202403 72.969 312.332 78.020
202406 76.053 314.175 80.840
202409 76.522 315.301 81.049
202412 83.154 315.605 87.988
202503 80.724 319.799 84.297
202506 77.354 322.561 80.086
202509 76.764 324.800 78.927
202512 77.389 324.054 79.753
202603 78.279 330.213 79.165
202606 79.517 333.952 79.517

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Is LGI Homes (FRA:LG1) Overvalued in 2026?

Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued. The current stock price of €51.20 is trading 11.8% below its estimated GF Value™ of €58.04. GuruFocus considers LGI Homes to be Modestly Undervalued.

Key valuation signals for FRA:LG1:

  • Cyclically Adjusted PB Ratio:
  • GF Value™: €58.04 vs. price of €51.20 (11.8% below fair value)
  • GF Score™: 68/100 with 8 warning signs

No single metric tells the full story. See the FRA:LG1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


LGI Homes Business Description

Other Exchanges LGIH:USA0JSI:UK
Address 1450 Lake Robbins Drive, Suite 430, The Woodlands, TX, USA, 77380
LGI Homes Inc is engaged in the design, construction, and sale of new homes in markets. The company's current product offerings include entry-level homes, including both detached homes and townhomes, and move-up homes sold, which are sold under the LGI Homes brand, and luxury series homes, which are sold under the Terrata Homes brand. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances, and ceramic tile flooring. The company has seven operating segments: West, Northwest, Central, Midwest, Florida, Southeast, and Mid-Atlantic. The majority of the revenue is generated from the Central division segment.
68GF Score

Get the complete analysis for FRA:LG1

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€51.20
Price
€58.04
GF Value