Meritage HomesMTH -2.35%81 EV-to-FCF is 27.21 as of Jul. 06, 2026, which is 411% above its 10-year median of 5.33. GuruFocus rates MTH with a GF Score™ of 81/100 and a GF Value™ of $69.02 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 56 Homebuilding & Construction companies, Meritage Homes ranks worse than 76.79% 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 $6,468 Mil.
Meritage Homes's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $238 Mil. Therefore, Meritage Homes's EV-to-FCF for today is 27.21.
The historical rank and industry rank for Meritage Homes's EV-to-FCF or its related term are showing as below:
MTH'
s EV-to-FCF Range Over the Past 10 Years
Min: -119.27 Med: 5.33 Max: 395.41
Current: 27.21
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 5.33.
MTH's EV-to-FCF is ranked worse than 76.79% of 56
companies
in the Homebuilding & Construction industry
Industry Median: 14.425
vs MTH: 27.21
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 $79.94.
Meritage Homes's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.450.
* 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 $6,468 Mil.
Meritage Homes's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $238 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 (MTH) has a EV-to-FCF of 27.21 as of Jul. 06, 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 411% above median its historical median of 5.33. According to the industry distribution chart, Meritage Homes ranks #43 out of 56 companies in the Homebuilding & Construction industry, placing it in the top 76.8%.
Is Meritage Homes' EV-to-FCF too high?
Meritage Homes' current EV-to-FCF of 27.21 is 411% above median its 10-year median of 5.33. The Homebuilding & Construction industry median EV-to-FCF is 14.43. Meritage Homes' value of 27.21 is 88.6% above this industry median. Based on the distribution chart, Meritage Homes ranks #43 out of 56 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Meritage Homes has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' EV-to-FCF compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #43 out of 56 companies for EV-to-FCF. This places Meritage Homes in the lower half of its industry. The industry median EV-to-FCF is 14.43. Meritage Homes' value of 27.21 is 88.6% above this benchmark. While the company's 10-year median is 5.33 vs. the industry median of 14.43, Meritage 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 EV-to-FCF for a Homebuilding & Construction company?
The median EV-to-FCF among Homebuilding & Construction companies is 14.43, based on 56 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 27.21 is 88.6% 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 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 14.43 — 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 27.21, which is 411% above median its own 10-year median of 5.33. 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 (MTH) is currently considered Modestly Overvalued. The stock's GF Value™ is $69.02, compared to a current price of $79.94 — trading 15.8% above its estimated fair value. The current EV-to-FCF is 27.21, which is 411% above median its 10-year median of 5.33 and 88.6% above the Homebuilding & Construction industry median of 14.43. Meritage Homes' overall GF Score™ is 81/100 with 10 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 (MTH), the current EV-to-FCF is 27.21 as of Jul. 06, 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 (MTH) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Homes stock appears to be overvalued.
The current stock price of $79.94 is trading 15.8% above its estimated GF Value™ of $69.02.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for MTH:
EV-to-FCF: 27.21 (411% above median its 10-year median of 5.33)
GF Value™: $69.02 vs. price of $79.94 (15.8% above fair value)
Industry Position: 88.6% above the Homebuilding & Construction median (#43 of 56)
No single metric tells the full story. See the MTH 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.
81GF Score
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