Meritage Homes (FRA:MEY) Margin of Safety % (DCF FCF Based): -89.97% (As of Jun. 25, 2026)


FRA:MEY Meritage Homes Corp FRA:MEY
79 GF Score
Price €65.50
GF Value €54.84
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Meritage Homes Margin of Safety % (DCF FCF Based)?

Meritage Homes FRA:MEY +1.55% 79 Margin of Safety % (DCF FCF Based) is -89.97% as of Jun. 25, 2026. GuruFocus rates FRA:MEY with a GF Score™ of 79/100 and a GF Value™ of €54.84 (Modestly Overvalued). The stock has 10 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Meritage Homes's Predictability Rank is 2.5-Stars. Meritage Homes's intrinsic value calculated from the Discounted FCF model is €164.38 and current share price is €65.50. Consequently,

Meritage Homes's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -89.97%.

FRA:MEY vs CVCO, SKY, MHO: Margin of Safety % (DCF FCF Based) Comparison

For the Residential Construction subindustry, Meritage Homes's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Meritage Homes's Margin of Safety % (DCF FCF Based) falls into.


FRA:MEY
79GF Score
Meritage Homes Corp FRA:MEY
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Meritage Homes Margin of Safety % (DCF FCF Based) Calculation

Meritage Homes's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(34.48-65.50)/34.48
=-89.97 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -89.97% mean?
Meritage Homes (FRA:MEY) has a Margin of Safety % (DCF FCF Based) of -89.97% as of Jun. 25, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Meritage Homes.
Is Meritage Homes' Margin of Safety % (DCF FCF Based) too high?
Meritage Homes' current Margin of Safety % (DCF FCF Based) is -89.97%. Overall, Meritage Homes has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' Margin of Safety % (DCF FCF Based) compare to CVCO and SKY?
Meritage Homes' Margin of Safety % (DCF FCF Based) of -89.97% can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Homebuilding & Construction company?
A good Margin of Safety % (DCF FCF Based) depends on the Homebuilding & Construction industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Meritage Homes. Meritage Homes's current Margin of Safety % (DCF FCF Based) is -89.97%. 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 Modestly Overvalued. The stock's GF Value™ is €54.84, compared to a current price of €65.50 — trading 19.4% above its estimated fair value. The current Margin of Safety % (DCF FCF Based) is -89.97%. Meritage Homes' overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current Margin of Safety % (DCF FCF Based) is -89.97% as of Jun. 25, 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 €65.50 is trading 19.4% above its estimated GF Value™ of €54.84. GuruFocus considers Meritage Homes to be Modestly Overvalued.

Key valuation signals for FRA:MEY:

  • Margin of Safety % (DCF FCF Based): -89.97%
  • GF Value™: €54.84 vs. price of €65.50 (19.4% above fair value)
  • GF Score™: 79/100 with 10 warning signs

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 Business Description

Other Exchanges MTH:USA
Address 18655 North Claret Drive, Suite 400, Scottsdale, AZ, USA, 85255
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.
79GF Score

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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€65.50
Price
€54.84
GF Value