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Meritage HomesFRA:MEY -3.91%77 Debt-to-EBITDA is 3.70 as of Jun. 2026, which is 50% above its 10-year median of 2.47. GuruFocus rates FRA:MEY with a GF Score™ of 77/100 and a GF Value™ of €61.78 (Fairly Valued). The stock has 7 warning signs investors should review. Among 81 Homebuilding & Construction companies, Meritage Homes ranks worse than 55.56% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Meritage Homes's Debt-to-EBITDA or its related term are showing as below:
FRA:MEY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.89 Med: 2.47 Max: 4.79
Current: 4.23
During the past 13 years, the highest Debt-to-EBITDA Ratio of Meritage Homes was 4.79. The lowest was 0.89. And the median was 2.47.
FRA:MEY's Debt-to-EBITDA is ranked worse than 55.56% of 81
companies
in the Homebuilding & Construction industry
Industry Median: 3.83
vs FRA:MEY: 4.23
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Meritage Homes Debt-to-EBITDA Related Terms
Meritage Homes Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Meritage Homes's Debt-to-EBITDA 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.
FRA:MEY vs SKY, CVCO, MHO: Debt-to-EBITDA Comparison
For the Residential Construction subindustry, Meritage Homes's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Meritage Homes Debt-to-EBITDA vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Meritage Homes (FRA:MEY) has a Debt-to-EBITDA of 3.70 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Meritage Homes. This is 50% above median its historical median of 2.47. Over the past decade, Meritage Homes' Debt-to-EBITDA has ranged from 0.89 to 4.79. According to the industry distribution chart, Meritage Homes ranks #45 out of 81 companies in the Homebuilding & Construction industry, placing it in the top 55.6%.
Is Meritage Homes' Debt-to-EBITDA too high?
Meritage Homes' current Debt-to-EBITDA of 3.70 is 50% above median its 10-year median of 2.47. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 4.79. The Homebuilding & Construction industry median Debt-to-EBITDA is 3.83. Meritage Homes' value of 3.70 is 3.4% below this industry median. Based on the distribution chart, Meritage Homes ranks #45 out of 81 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Meritage Homes has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Debt-to-EBITDA compare to SKY and CVCO?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #45 out of 81 companies for Debt-to-EBITDA. This places Meritage Homes in the lower half of its industry. The industry median Debt-to-EBITDA is 3.83. Meritage Homes' value of 3.70 is 3.4% below this benchmark. Historically, Meritage Homes' own Debt-to-EBITDA has ranged from 0.89 to 4.79 over the past decade. While the company's 10-year median is 2.47 vs. the industry median of 3.83, Meritage Homes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Homebuilding & Construction company?
The median Debt-to-EBITDA among Homebuilding & Construction companies is 3.83, based on 81 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current Debt-to-EBITDA of 3.70 is 3.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Meritage Homes. For the Homebuilding & Construction industry, the median Debt-to-EBITDA is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current Debt-to-EBITDA is 3.70, which is 50% above median its own 10-year median of 2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Homes stock overvalued right now?
Based on GuruFocus' analysis, Meritage Homes (FRA:MEY) is currently considered Fairly Valued. The stock's GF Value™ is €61.78, compared to a current price of €61.50 — trading 0.5% below its estimated fair value. The current Debt-to-EBITDA is 3.70, which is 50% above median its 10-year median of 2.47 and 3.4% below the Homebuilding & Construction industry median of 3.83. Meritage Homes' overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Debt-to-EBITDA is 3.70 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Meritage Homes (FRA:MEY) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Homes stock appears to be undervalued.
The current stock price of €61.50 is trading 0.5% below its estimated GF Value™ of €61.78.
GuruFocus considers Meritage Homes to be Fairly Valued.
Key valuation signals for FRA:MEY:
Debt-to-EBITDA: 3.70 (50% above median its 10-year median of 2.47)
GF Value™: €61.78 vs. price of €61.50 (0.5% below fair value)
Industry Position: 3.4% below the Homebuilding & Construction median (#45 of 81)
No single metric tells the full story. See the FRA:MEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, comprising twelve states: Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina. The company operates with two principal business segments: homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services, and the financial services segment offers title and escrow, mortgage, and insurance services. The company generates key revenue from the Homebuilding segment.
77GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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