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LGI HomesLGIH -1.52%68 Debt-to-EBITDA is 706.72 as of Mar. 2026, which is 21645% above its 10-year median of 3.25. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $72.39 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 80 Homebuilding & Construction companies, LGI Homes ranks worse than 92.5% 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 LGI Homes's Debt-to-EBITDA or its related term are showing as below:
LGIH'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.48 Med: 3.25 Max: 20.54
Current: 20.54
During the past 13 years, the highest Debt-to-EBITDA Ratio of LGI Homes was 20.54. The lowest was 1.48. And the median was 3.25.
LGIH's Debt-to-EBITDA is ranked worse than 92.5% of 80
companies
in the Homebuilding & Construction industry
Industry Median: 3.67
vs LGIH: 20.54
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.
LGI Homes Debt-to-EBITDA Related Terms
LGI Homes Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for LGI 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.
For the Residential Construction subindustry, LGI 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.
LGI Homes Debt-to-EBITDA vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where LGI 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 (Mar. 2026) EBITDA data.
LGI Homes (LGIH) has a Debt-to-EBITDA of 706.72 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on LGI Homes. This is 21645% above median its historical median of 3.25. Over the past decade, LGI Homes' Debt-to-EBITDA has ranged from 1.48 to 20.54. According to the industry distribution chart, LGI Homes ranks #74 out of 80 companies in the Homebuilding & Construction industry, placing it in the top 92.5%.
Is LGI Homes' Debt-to-EBITDA too high?
LGI Homes' current Debt-to-EBITDA of 706.72 is 21645% above median its 10-year median of 3.25. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 20.54. The Homebuilding & Construction industry median Debt-to-EBITDA is 3.67. LGI Homes' value of 706.72 is 19156.7% above this industry median. Based on the distribution chart, LGI Homes ranks #74 out of 80 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, LGI Homes has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Debt-to-EBITDA compare to DFH and BXBL?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #74 out of 80 companies for Debt-to-EBITDA. This places LGI Homes in the lower half of its industry. The industry median Debt-to-EBITDA is 3.67. LGI Homes' value of 706.72 is 19156.7% above this benchmark. Historically, LGI Homes' own Debt-to-EBITDA has ranged from 1.48 to 20.54 over the past decade. While the company's 10-year median is 3.25 vs. the industry median of 3.67, LGI Homes has consistently been above 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 3.67, based on 80 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. LGI Homes's current Debt-to-EBITDA of 706.72 is 19156.7% above 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 LGI Homes. For the Homebuilding & Construction industry, the median Debt-to-EBITDA is 3.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Debt-to-EBITDA is 706.72, which is 21645% above median its own 10-year median of 3.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGI Homes stock overvalued right now?
Based on GuruFocus' analysis, LGI Homes (LGIH) is currently considered Modestly Undervalued. The stock's GF Value™ is $72.39, compared to a current price of $57.12 — trading 21.1% below its estimated fair value. The current Debt-to-EBITDA is 706.72, which is 21645% above median its 10-year median of 3.25 and 19156.7% above the Homebuilding & Construction industry median of 3.67. LGI Homes' overall GF Score™ is 68/100 with 8 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 LGI Homes (LGIH), the current Debt-to-EBITDA is 706.72 as of Mar. 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 LGI Homes (LGIH) Overvalued in 2026?
Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued.
The current stock price of $57.12 is trading 21.1% below its estimated GF Value™ of $72.39.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Debt-to-EBITDA: 706.72 (21645% above median its 10-year median of 3.25)
GF Value™: $72.39 vs. price of $57.12 (21.1% below fair value)
Industry Position: 19156.7% above the Homebuilding & Construction median (#74 of 80)
No single metric tells the full story. See the LGIH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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
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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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