Meritage Corporation (MTH) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Meritage Corporation stock $89.14, price $68.05, upside +31.0%, quality 53 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $30.23 – $101.57 · fair‑value band $48.47 – $158.18 · the $68.05 price screens below the $89.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 8, 2026.
Follow Meritage in your weekly email
Every Wednesday you see whether Meritage is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments: Homebuilding and Financial Services.
Show moreShow less
It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee.
The company also provides title and escrow, mortgage, insurance, title insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.
Stock analysis
Meritage Corporation (MTH) currently trades at $68.05, while our model-based Fair Value estimate is $89.14, implying the stock looks roughly 24% undervalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of $144.62 per share, and 17 of the 26 models we run sit above the $68.05 price.
Bear case: the Dividend Discount group reads lowest at $26.30, and 9 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $48.47 (bear) to $158.18 (bull), the price of $68.05 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Meritage Corporation reported revenue of $5.9B in FY2025 versus $5.1B in FY2021, a compound +3.3%/yr. Reported net income was $453M in FY2025, compounding −11.5%/yr from FY2021.
Key figures
Market cap $4.5B Mid · P/E ratio 14.6 · P/S ratio 0.84 · EPS (TTM) $4.65 · Dividend yield 2.7% · Net margin 6.1% · Return on equity 6.4% · Return on assets (EBIT) 16.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).
What moves the price
The share trades about 20% below its 52-week high and 18% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 38% fair-value upside, at 31%, MTH screens richer than that median.
Fair Value models
Bear$48.47Fair Value $89.14Bull$158.18
Price $68.05 · Upside +31.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.42 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $79,066 and none bought.
SaleAlison SasserSVP - Chief Accounting Officer4× since Feb 18, 2026: 2,262 shares, avg. $69.43$157,045May 12, 2026
SaleAustin M WoffindenEVP, Corp. Ops & Strategy3× since Feb 18, 2026: 1,053 shares, avg. $78.77$82,949Feb 24, 202610b5-1 plan
SalePhillippe LordChief Executive Officer, Director2× since Feb 18, 2026: 37,820 shares, avg. $76.97$2.9MFeb 23, 2026
SaleHilla SferruzzaEVP- Chief Financial Officer10,928 shares at $76.35$834,329Feb 23, 202610b5-1 plan
SaleJavier FelicianoEVP Chief People Officer3,580 shares at $76.24$272,931Feb 23, 202610b5-1 plan
SaleMalissia ClintonEVP - Gen. Counsel, Secretary5,185 shares at $76.11$394,617Feb 23, 202610b5-1 plan
SaleSteven J HiltonExecutive Chairman, Director4,835 shares at $76.13$368,107Feb 23, 202610b5-1 plan
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.36/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−8.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.4%
Start year 2020 (pandemic). Over 10 years: +8.5% a year
Revenue growth 36 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.7%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−5.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year−7.9%
Dividend (yield on the price)2.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−7.9% vs 6.5%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 9%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +30.2% a year for the price and −0.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Meritage's focus on energy-efficient homes and cost discipline stand as its main strengths, yet thin moat evidence leaves it exposed in a competitive cyclical industry.
Main risk: High mortgage rates fueling slowing sales and rising incentives threaten to reduce volumes and pressure margins at Meritage.
Meritage Homes operates as one of the larger U.S. builders with a focus on energy-efficient homes, yet it contends with the same slowing sales and rising incentives that pressure the sector amid high mortgage rates. Its upcoming third-quarter results could clarify whether disciplined cost management protects margins better than peers expect. Will volume weakness dominate or will operational strengths show through more clearly than headline numbers suggest?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Residential Construction · 62 stocks
Beats the industry median on 4/15 measures
Overall it trails its industry peers.
Valuation
Quality Score53 · Below median
Fair Value upside+31.0% · Below median
Profitability
Return on equity (12 months)6.4% · Below median
Return on assets5.9% · Above median
Net margin (12 months)6.1% · Below median
Operating margin (12 months)8.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)−13.8% · Bottom 25%
Dividend yield (12 months)2.7% · Below median
Balance sheet
Debt / equity0.35× · Above median
Valuation Multiplesvs Residential Construction median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Meritage Corporation Fair Value". https://www.fairvalue-calculator.com/stock/MTH
Frequently asked questions
Is Meritage Corporation (MTH) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $89.14 versus a price of $68.05, about +31% upside (undervalued).
What is the fair value of MTH?
Our model-based fair value for Meritage Corporation is $89.14 (as of Nov 8, 2026), built from audited fundamentals. The current price: $68.05.
What is the quality score of MTH?
Meritage Corporation has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Meritage Corporation (MTH)?
Our model-based price target is the fair value of $89.14 (as of Nov 8, 2026) from 26 valuation models. Cautious scenario $48.47, optimistic scenario $158.18. It is a calculation from audited fundamentals, not an analyst target.
What is the Meritage Corporation stock forecast for 2026?
Our models put fair value at $89.14, about +31% upside versus a price of $68.05 (undervalued). Cautious scenario $48.47, optimistic scenario $158.18. The calculation is refreshed regularly with new filings.
What is the revenue of Meritage Corporation (MTH)?
Meritage Corporation reported trailing-twelve-month revenue of about $5.4B (latest available figure, as of Nov 8, 2026).
Does Meritage Corporation pay a dividend?
Meritage Corporation currently shows a dividend yield of 2.67% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Meritage Corporation (MTH) and when is the ex-dividend date?
Meritage Corporation pays a dividend of $1.82 per share a year, a dividend yield of 2.7%. The last ex-dividend date was Sep 15, 2026. The payout ratio is 39.1% of earnings. Free cash flow covers the dividend 0.78 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Meritage Corporation (MTH)?
For today's price to be fair in a discounted-cash-flow model, Meritage Corporation would have to grow free cash flow by +33.3 % per year for five years (discount rate 10.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.4 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of MTH use?
Our models discount Meritage Corporation at 10.6 %: a base by market capitalisation (mid), damped by beta 1.34, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Meritage Corporation that is +33.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.6 %) and the same formula as our fair value.
How much growth has Meritage Corporation (MTH) delivered so far?
Over the past 5 years revenue at Meritage Corporation grew +5.4 % a year. The price currently implies free-cash-flow growth of +33.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Meritage Corporation (MTH) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Meritage Corporation (+33.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Meritage Corporation (MTH)?
The free-cash-flow yield on the price is 2.04 %: that much free cash flow Meritage Corporation produces per unit of market value. When it exceeds the discount rate of our models (10.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Meritage Corporation (MTH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Meritage Corporation it is $89.14 per share (as of Nov 8, 2026), against a price of $68.05. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Meritage Corporation stock overvalued or undervalued in 2026?
As of Nov 8, 2026, MTH trades below its calculated fair value: price $68.05, fair value $89.14, a gap of about +31% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MTH?
No. The price is what the market pays today ($68.05); the fair value is what the company's own numbers justify ($89.14). For Meritage Corporation the two are $21.09 per share apart. That gap is exactly why we show both numbers side by side.
How much is Meritage Corporation worth?
The market values Meritage Corporation at about $4.5B (market capitalisation, as of Nov 8, 2026). Per share that is $68.05; our models calculate a fair value of $89.14 per share.
What do the bullish and bearish scenarios say about MTH?
Our models span a range for Meritage Corporation: cautious scenario $48.47, base $89.14, optimistic $158.18 per share (as of Nov 8, 2026, price $68.05). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MTH?
Meritage Corporation trades at a price-to-earnings ratio of 14.6 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $89.14 is built from several models across several years. Other multiples: PEG 0.5, P/B 0.9, P/S 0.8, EV/EBITDA 12.9.
What is the PEG ratio of MTH?
The PEG ratio of Meritage Corporation is 0.54 (P/E divided by earnings growth, as of Nov 8, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Meritage Corporation (MTH)?
Balance-sheet figures for Meritage Corporation (as of Nov 8, 2026): return on equity 6.4%, debt of 0.35 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is MTH from its 52-week high?
Meritage Corporation trades at $68.05, about 20% below its 52-week high of $84.55 and 18% above the low of $57.85 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $89.14 is for.
Which stocks are comparable to Meritage Corporation?
From the same area (Consumer Cyclical) we also value D.R. Horton, Inc, PulteGroup, Inc, Lennar Corporation, NVR, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Meritage Corporation stock attractive at the current price?
The data as of Nov 8, 2026: price $68.05, calculated fair value $89.14 (+31%), Quality Score 53/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MTH calculated?
We run Meritage Corporation through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $89.14 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Meritage Corporation currently trades 24% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Meritage Corporation (MTH)?
The closing price on Nov 6, 2026 was $68.05. Our model-based fair value is $89.14, about +31% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Meritage Corporation right now?
The model range is unusually wide ($48.47 to $158.18). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Meritage Corporation (MTH) come from?
Earnings per share at Meritage Corporation grew +11.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.5 %, EBIT margin +6.9 %, tax rate +3.6 %, residual (interest, one-offs) −2.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Meritage Corporation
How large is the market capitalisation of Meritage Corporation (MTH)?
The market capitalisation of Meritage Corporation is $4.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Meritage Corporation (MTH)?
The price-to-sales ratio of Meritage Corporation is 0.84 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Meritage Corporation (MTH)?
Earnings per share at Meritage Corporation are $4.65 (price ÷ EPS = P/E 14.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Meritage Corporation (MTH)?
The dividend yield of Meritage Corporation is 2.7% (payout 39.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Meritage Corporation (MTH)?
The net margin of Meritage Corporation is 6.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Meritage Corporation (MTH)?
The return on equity (ROE) of Meritage Corporation is 6.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Meritage Corporation (MTH)?
On an EBIT basis the return on assets of Meritage Corporation is 16.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Meritage Corporation (MTH)?
The operating margin of Meritage Corporation is 8.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Meritage Corporation (MTH)?
Revenue at Meritage Corporation is growing −13.8% versus a year earlier (3y avg −2.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Meritage Corporation (MTH)?
Earnings per share at Meritage Corporation are growing −32.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Meritage Corporation (MTH) carry?
The net debt of Meritage Corporation is $1.1B (fiscal year 2025, ≈ 12.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Meritage Corporation in the live analysis
One click puts Meritage Corporation on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 8, 2026