Meritage HomesFRA:MEY 80 PEG Ratio is 6.38 as of Jul. 05, 2026, which is 1958% above its 10-year median of 0.31. GuruFocus rates FRA:MEY with a GF Score™ of 80/100 and a GF Value™ of €59.44 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 42 Homebuilding & Construction companies, Meritage Homes ranks worse than 90.48% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Meritage Homes's PEG Ratio or its related term are showing as below:
FRA:MEY'
s PEG Ratio Range Over the Past 10 Years
Min: 0.06 Med: 0.31 Max: 6.37
Current: 6.37
During the past 13 years, Meritage Homes's highest PEG Ratio was 6.37. The lowest was 0.06. And the median was 0.31.
FRA:MEY's PEG Ratio is ranked worse than 90.48% of 42
companies
in the Homebuilding & Construction industry
Industry Median: 1.07
vs FRA:MEY: 6.37
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Meritage Homes (FRA:MEY) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Meritage Homes PEG Ratio Related Terms
Meritage Homes PEG Ratio Historical Data
* Premium members only.
The historical data trend for Meritage Homes's PEG 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 PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Meritage Homes's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Meritage Homes (FRA:MEY) has a PEG Ratio of 6.38 as of Jul. 05, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Meritage Homes and its competitors. This is 1958% above median its historical median of 0.31. Over the past decade, Meritage Homes' PEG Ratio has ranged from 0.06 to 6.37. According to the industry distribution chart, Meritage Homes ranks #38 out of 42 companies in the Homebuilding & Construction industry, placing it in the top 90.5%.
Is Meritage Homes' PEG Ratio too high?
Meritage Homes' current PEG Ratio of 6.38 is 1958% above median its 10-year median of 0.31. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 6.37. The Homebuilding & Construction industry median PEG Ratio is 1.07. Meritage Homes' value of 6.38 is 496.3% above this industry median. Based on the distribution chart, Meritage Homes ranks #38 out of 42 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Meritage Homes has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meritage Homes' PEG Ratio compare to IBP and SKY?
According to the Homebuilding & Construction industry distribution chart, Meritage Homes ranks #38 out of 42 companies for PEG Ratio. This places Meritage Homes in the lower half of its industry. The industry median PEG Ratio is 1.07. Meritage Homes' value of 6.38 is 496.3% above this benchmark. Historically, Meritage Homes' own PEG Ratio has ranged from 0.06 to 6.37 over the past decade. While the company's 10-year median is 0.31 vs. the industry median of 1.07, 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 PEG Ratio for a Homebuilding & Construction company?
The median PEG Ratio among Homebuilding & Construction companies is 1.07, based on 42 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Homes's current PEG Ratio of 6.38 is 496.3% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Meritage Homes and its competitors. For the Homebuilding & Construction industry, the median PEG Ratio is 1.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Homes's current PEG Ratio is 6.38, which is 1958% above median its own 10-year median of 0.31. 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 €59.44, compared to a current price of €70.50 — trading 18.6% above its estimated fair value. The current PEG Ratio is 6.38, which is 1958% above median its 10-year median of 0.31 and 496.3% above the Homebuilding & Construction industry median of 1.07. Meritage Homes' overall GF Score™ is 80/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Meritage Homes (FRA:MEY), the current PEG Ratio is 6.38 as of Jul. 05, 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 €70.50 is trading 18.6% above its estimated GF Value™ of €59.44.
GuruFocus considers Meritage Homes to be Modestly Overvalued.
Key valuation signals for FRA:MEY:
PEG Ratio: 6.38 (1958% above median its 10-year median of 0.31)
GF Value™: €59.44 vs. price of €70.50 (18.6% above fair value)
Industry Position: 496.3% above the Homebuilding & Construction median (#38 of 42)
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.
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