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Meritage HomesFRA:MEY +1.57%82 PB Ratio is 0.98 as of Jul. 17, 2026, which is 13% below its 10-year median of 1.12. GuruFocus rates FRA:MEY with a GF Score™ of 82/100 and a GF Value™ of €58.27 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 94 Homebuilding & Construction companies, Meritage Homes ranks better than 50% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-07-17), Meritage Homes's share price is €64.50. Meritage Homes's Book Value per Share for the quarter that ended in Mar. 2026 was €66.06. Hence, Meritage Homes's PB Ratio of today is 0.98.
Warning Sign:
Meritage Homes Corp stock PB Ratio (=1.01) is close to 1-year high of 1.12.
The historical rank and industry rank for Meritage Homes's PB Ratio or its related term are showing as below:
FRA:MEY'
s PB Ratio Range Over the Past 10 Years
Min: 0.6 Med: 1.12 Max: 1.97
Current: 1.01
During the past 13 years, Meritage Homes's highest PB Ratio was 1.97. The lowest was 0.60. And the median was 1.12.
FRA:MEY's PB Ratio is ranked better than 50% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 1.015
vs FRA:MEY: 1.01
During the past 12 months, Meritage Homes's average Book Value Per Share Growth Rate was 5.60% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 12.20% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 19.70% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 19.00% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Meritage Homes was 63.90% per year. The lowest was -43.20% per year. And the median was 16.10% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Meritage Homes PB Ratio Related Terms
Meritage Homes PB Ratio Historical Data
* Premium members only.
The historical data trend for Meritage Homes's PB Ratio 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's PB Ratio distribution charts can be found below:
* The bar in red indicates where Meritage Homes's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Meritage Homes's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Meritage Homes (FRA:MEY) has a PB Ratio of 0.98 as of Jul. 17, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Meritage Homes and its competitors. This is 13% below median its historical median of 1.12. Over the past decade, Meritage Homes' PB Ratio has ranged from 0.60 to 1.97. According to the industry distribution chart, Meritage Homes ranks #47 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 50%.
Is Meritage Homes' PB Ratio too high?
Meritage Homes' current PB Ratio of 0.98 is 13% below median its 10-year median of 1.12. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 1.97. The Homebuilding & Construction industry median PB Ratio is 1.02. Meritage Homes' value of 0.98 is 3.4% below this industry median. Based on the distribution chart, Meritage Homes ranks #47 out of 94 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Meritage Homes has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' PB Ratio compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #47 out of 94 companies for PB Ratio. This puts Meritage Homes in the upper half of its industry. The industry median PB Ratio is 1.02. Meritage Homes' value of 0.98 is 3.4% below this benchmark. Historically, Meritage Homes' own PB Ratio has ranged from 0.60 to 1.97 over the past decade. While the company's 10-year median is 1.12 vs. the industry median of 1.02, 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 PB Ratio for a Homebuilding & Construction company?
The median PB Ratio among Homebuilding & Construction companies is 1.02, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current PB Ratio of 0.98 is 3.4% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median PB Ratio is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current PB Ratio is 0.98, which is 13% below median its own 10-year median of 1.12. 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 €58.27, compared to a current price of €64.50 — trading 10.7% above its estimated fair value. The current PB Ratio is 0.98, which is 13% below median its 10-year median of 1.12 and 3.4% below the Homebuilding & Construction industry median of 1.02. Meritage Homes' overall GF Score™ is 82/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current PB Ratio is 0.98 as of Jul. 17, 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 €64.50 is trading 10.7% above its estimated GF Value™ of €58.27.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
PB Ratio: 0.98 (13% below median its 10-year median of 1.12)
GF Value™: €58.27 vs. price of €64.50 (10.7% above fair value)
Industry Position: 3.4% below the Homebuilding & Construction median (#47 of 94)
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.
82GF Score
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