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.
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.
Meritage HomesFRA:MEY -0.81%83 EV-to-FCF is 13.61 as of Aug. 01, 2026, which is 141% above its 10-year median of 5.64. GuruFocus rates FRA:MEY with a GF Score™ of 83/100 and a GF Value™ of €60.91 (Fairly Valued). The stock has 6 warning signs investors should review. Among 53 Homebuilding & Construction companies, Meritage Homes ranks better than 54.72% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Meritage Homes's Enterprise Value is €4,873 Mil.
Meritage Homes's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2026 was €358 Mil. Therefore, Meritage Homes's EV-to-FCF for today is 13.61.
The historical rank and industry rank for Meritage Homes's EV-to-FCF or its related term are showing as below:
FRA:MEY'
s EV-to-FCF Range Over the Past 10 Years
Min: -119.27 Med: 5.64 Max: 395.41
Current: 13.64
During the past 13 years, the highest EV-to-FCF of Meritage Homes was 395.41. The lowest was -119.27. And the median was 5.64.
FRA:MEY's EV-to-FCF is ranked better than 54.72% of 53
companies
in the Homebuilding & Construction industry
Industry Median: 14.61
vs FRA:MEY: 13.64
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Meritage Homes's PE Ratio (TTM) for today is calculated as:
Meritage Homes's share price for today is €61.00.
Meritage Homes's Earnings per Share (Diluted) 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 €4.107.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Meritage Homes EV-to-FCF Related Terms
Meritage Homes EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Meritage Homes's EV-to-FCF 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, Meritage Homes's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 EV-to-FCF vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Meritage Homes's EV-to-FCF falls into.
Meritage Homes's current Enterprise Value is €4,873 Mil.
Meritage Homes's Free Cash Flow 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 €358 Mil.
* 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.
Meritage Homes (FRA:MEY) has a EV-to-FCF of 13.61 as of Aug. 01, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Meritage Homes and its competitors. This is 141% above median its historical median of 5.64. According to the industry distribution chart, Meritage Homes ranks #24 out of 53 companies in the Homebuilding & Construction industry, placing it in the top 45.3%.
Is Meritage Homes' EV-to-FCF too high?
Meritage Homes' current EV-to-FCF of 13.61 is 141% above median its 10-year median of 5.64. The Homebuilding & Construction industry median EV-to-FCF is 14.61. Meritage Homes' value of 13.61 is 6.8% below this industry median. Based on the distribution chart, Meritage Homes ranks #24 out of 53 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Meritage Homes has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' EV-to-FCF compare to SKY and CVCO?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #24 out of 53 companies for EV-to-FCF. This puts Meritage Homes in the upper half of its industry. The industry median EV-to-FCF is 14.61. Meritage Homes' value of 13.61 is 6.8% below this benchmark. While the company's 10-year median is 5.64 vs. the industry median of 14.61, 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 EV-to-FCF for a Homebuilding & Construction company?
The median EV-to-FCF among Homebuilding & Construction companies is 14.61, based on 53 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current EV-to-FCF of 13.61 is 6.8% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median EV-to-FCF is 14.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current EV-to-FCF is 13.61, which is 141% above median its own 10-year median of 5.64. 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 €60.91, compared to a current price of €61.00 — trading 0.1% above its estimated fair value. The current EV-to-FCF is 13.61, which is 141% above median its 10-year median of 5.64 and 6.8% below the Homebuilding & Construction industry median of 14.61. Meritage Homes' overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current EV-to-FCF is 13.61 as of Aug. 01, 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 overvalued.
The current stock price of €61.00 is trading 0.1% above its estimated GF Value™ of €60.91.
GuruFocus considers Meritage Homes to be Fairly Valued.
Key valuation signals for FRA:MEY:
EV-to-FCF: 13.61 (141% above median its 10-year median of 5.64)
GF Value™: €60.91 vs. price of €61.00 (0.1% above fair value)
Industry Position: 6.8% below the Homebuilding & Construction median (#24 of 53)
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.
83GF Score
Get the complete analysis for FRA:MEY
EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:MEY has been successfully added to your 
