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LGI HomesLGIH -3.80%68 Earnings Yield (Joel Greenblatt) % is 2.28% as of Jun. 2026, which is 73% below its 10-year median of 8.38. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $65.40 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 99 Homebuilding & Construction companies, LGI Homes ranks worse than 72.73% on this metric.
LGI Homes's Enterprise Value for the quarter that ended in Jun. 2026 was $3,005 Mil.
LGI Homes's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $68 Mil. LGI Homes's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 2.28%.
The historical rank and industry rank for LGI Homes's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
LGIH'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.3 Med: 8.38 Max: 19.07
Current: 2.41
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of LGI Homes was 19.07%. The lowest was 2.30%. And the median was 8.38%.
LGIH's Earnings Yield (Joel Greenblatt) % is ranked worse than 72.73% of 99
companies
in the Homebuilding & Construction industry
Industry Median: 6.32
vs LGIH: 2.41
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. LGI Homes's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was -42.38%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
LGI Homes (NAS:LGIH) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
LGI Homes Earnings Yield (Joel Greenblatt) % Related Terms
LGI Homes Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for LGI Homes's Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Chart
For the Residential Construction subindustry, LGI Homes's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where LGI Homes's Earnings Yield (Joel Greenblatt) % falls into.
LGI Homes Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
LGI Homess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
LGI Homes's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $68 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 2.28% mean?
LGI Homes (LGIH) has a Earnings Yield (Joel Greenblatt) % of 2.28% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on LGI Homes and its competitors. This is 73% below median its historical median of 8.38. Over the past decade, LGI Homes' Earnings Yield (Joel Greenblatt) % has ranged from 2.30 to 19.07. According to the industry distribution chart, LGI Homes ranks #72 out of 99 companies in the Homebuilding & Construction industry, placing it in the top 72.7%.
Is LGI Homes' Earnings Yield (Joel Greenblatt) % too high?
LGI Homes' current Earnings Yield (Joel Greenblatt) % of 2.28% is 73% below median its 10-year median of 8.38. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 19.07. The Homebuilding & Construction industry median Earnings Yield (Joel Greenblatt) % is 6.32. LGI Homes' value of 2.28% is 63.9% below this industry median. Based on the distribution chart, LGI Homes ranks #72 out of 99 companies in the Homebuilding & Construction industry, which is below the industry midpoint. 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' Earnings Yield (Joel Greenblatt) % compare to DFH and BXBL?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #72 out of 99 companies for Earnings Yield (Joel Greenblatt) %. This places LGI Homes in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.32. LGI Homes' value of 2.28% is 63.9% below this benchmark. Historically, LGI Homes' own Earnings Yield (Joel Greenblatt) % has ranged from 2.30 to 19.07 over the past decade. While the company's 10-year median is 8.38 vs. the industry median of 6.32, LGI 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 Earnings Yield (Joel Greenblatt) % for a Homebuilding & Construction company?
The median Earnings Yield (Joel Greenblatt) % among Homebuilding & Construction companies is 6.32, based on 99 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Earnings Yield (Joel Greenblatt) % of 2.28% is 63.9% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Earnings Yield (Joel Greenblatt) % is 6.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Earnings Yield (Joel Greenblatt) % is 2.28%, which is 73% below median its own 10-year median of 8.38. 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 $65.40, compared to a current price of $56.39 — trading 13.8% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 2.28%, which is 73% below median its 10-year median of 8.38 and 63.9% below the Homebuilding & Construction industry median of 6.32. 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 Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For LGI Homes (LGIH), the current Earnings Yield (Joel Greenblatt) % is 2.28% 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 LGI Homes (LGIH) Overvalued in 2026?
Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued.
The current stock price of $56.39 is trading 13.8% below its estimated GF Value™ of $65.40.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Earnings Yield (Joel Greenblatt) %: 2.28% (73% below median its 10-year median of 8.38)
GF Value™: $65.40 vs. price of $56.39 (13.8% below fair value)
Industry Position: 63.9% below the Homebuilding & Construction median (#72 of 99)
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
Get the complete analysis for LGIH
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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