PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, LGI Homes's PE Ratio without NRI is 11.38. LGI Homes's 5-Year EBITDA growth rate is 9.80%. Therefore, LGI Homes's PEG Ratio for today is 1.16.
* 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 LGI Homes's PEG Ratio or its related term are showing as below:
LGIH'
s PEG Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.33 Max: 1.17
Current: 1.16
During the past 13 years, LGI Homes's highest PEG Ratio was 1.17. The lowest was 0.13. And the median was 0.33.
LGIH's PEG Ratio is ranked worse than 66.67% of 45
companies
in the Homebuilding & Construction industry
Industry Median: 0.66
vs LGIH: 1.16
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
LGI Homes PEG Ratio Historical Data
The historical data trend for LGI 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, LGI 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.
LGI Homes's PEG Ratio Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's PEG Ratio distribution charts can be found below:
* The bar in red indicates where LGI Homes's PEG Ratio falls into.
LGI Homes PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* 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.
LGI Homes (NAS:LGIH) 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.
LGI Homes PEG Ratio Related Terms
Thank you for viewing the detailed overview of LGI Homes's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
LGI Homes Inc is engaged in the design, construction, and sale of new homes in markets. The company current product offerings include entry-level homes, including both detached homes and townhomes, and move-up homes sold, which are sold under 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.
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