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LGI HomesLGIH +1.72%69 Graham Number is $83.21 as of Mar. 2026, which is 8568% above its 10-year median of 0.96. GuruFocus rates LGIH with a GF Score™ of 69/100 and a GF Value™ of $72.33 (Modestly Undervalued). The stock has 11 warning signs investors should review. Among 73 Homebuilding & Construction companies, LGI Homes ranks better than 54.79% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-29), the stock price of LGI Homes is $61.39. LGI Homes's graham number for the quarter that ended in Mar. 2026 was $83.21. Therefore, LGI Homes's Price to Graham Number ratio for today is 0.74.
The historical rank and industry rank for LGI Homes's Graham Number or its related term are showing as below:
LGIH'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.45 Med: 0.96 Max: 1.55
Current: 0.74
During the past 13 years, the highest Price to Graham Number ratio of LGI Homes was 1.55. The lowest was 0.45. And the median was 0.96.
LGIH's Price-to-Graham-Number is ranked better than 54.79% of 73
companies
in the Homebuilding & Construction industry
Industry Median: 0.77
vs LGIH: 0.74
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
LGI Homes (NAS:LGIH) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
LGI Homes's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
61.39
/
83.21
=
0.74
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
LGI Homes Graham Number Related Terms
LGI Homes Graham Number Historical Data
* Premium members only.
The historical data trend for LGI Homes's Graham Number 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 Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where LGI Homes's Price-to-Graham-Number 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.
LGI Homes (LGIH) has a Graham Number of $83.21 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on LGI Homes and its competitors. This is 8568% above median its historical median of 0.96. Over the past decade, LGI Homes' Graham Number has ranged from 0.45 to 1.55. According to the industry distribution chart, LGI Homes ranks #33 out of 73 companies in the Homebuilding & Construction industry, placing it in the top 45.2%.
Is LGI Homes' Graham Number too high?
LGI Homes' current Graham Number of $83.21 is 8568% above median its 10-year median of 0.96. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 1.55. The Homebuilding & Construction industry median Graham Number is 0.77. LGI Homes' value of $83.21 is 10706.5% above this industry median. Based on the distribution chart, LGI Homes ranks #33 out of 73 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, LGI Homes has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Graham Number compare to DFH and BXBL?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #33 out of 73 companies for Graham Number. This puts LGI Homes in the upper half of its industry. The industry median Graham Number is 0.77. LGI Homes' value of $83.21 is 10706.5% above this benchmark. Historically, LGI Homes' own Graham Number has ranged from 0.45 to 1.55 over the past decade. While the company's 10-year median is 0.96 vs. the industry median of 0.77, 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 Graham Number for a Homebuilding & Construction company?
The median Graham Number among Homebuilding & Construction companies is 0.77, based on 73 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Graham Number of $83.21 is 10706.5% 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 Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Graham Number is 0.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Graham Number is $83.21, which is 8568% above median its own 10-year median of 0.96. 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 $72.33, compared to a current price of $61.39 — trading 15.1% below its estimated fair value. The current Graham Number is $83.21, which is 8568% above median its 10-year median of 0.96 and 10706.5% above the Homebuilding & Construction industry median of 0.77. LGI Homes' overall GF Score™ is 69/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For LGI Homes (LGIH), the current Graham Number is $83.21 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 $61.39 is trading 15.1% below its estimated GF Value™ of $72.33.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Graham Number: $83.21 (8568% above median its 10-year median of 0.96)
GF Value™: $72.33 vs. price of $61.39 (15.1% below fair value)
Industry Position: 10706.5% above the Homebuilding & Construction median (#33 of 73)
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.
69GF Score
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