This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Meritage Homes's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $165.521. Meritage Homes's 10-Year median PS Ratio is 0.6809. Therefore, the Median PS Value for today is $112.70.
As of today (2024-04-24), Meritage Homes's share price is $158.19. Meritage Homes's Median PS Value is $112.70. Therefore, Meritage Homes's Price to Median PS Value for today is 1.40.
The historical rank and industry rank for Meritage Homes's Median PS Value or its related term are showing as below:
MTH'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.62 Med: 0.94 Max: 1.55
Current: 1.4
During the past 13 years, the highest Price to Median PS Value of Meritage Homes was 1.55. The lowest was 0.62. And the median was 0.94.
MTH's Price-to-Median-PS-Value is ranked worse than 77.78% of 63
companies
in the Homebuilding & Construction industry
Industry Median: 1
vs MTH: 1.40
Meritage Homes Median PS Value Historical Data
The historical data trend for Meritage Homes's Median PS Value 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 Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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 Price-to-Median-PS-Value Distribution
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Price-to-Median-PS-Value falls into.
Meritage Homes Median PS Value Calculation
Meritage Homes's Median PS Value for today is calculated as
10-Year Median PS Ratio is 0.6809.
Meritage Homes's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $165.521.
* 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 (NYSE:MTH) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Meritage Homes's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
158.19
/
112.70
=
1.40
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of Meritage Homes's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Meritage Homes (Meritage Homes) Business Description
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, which are comprised of ten states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Utah. 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 offer title and escrow, mortgage, and insurance services. The company generates key revenue from the homebuilding segment.
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