Latest Ratios: P/E Ratio 19.9x · EV/EBITDA 36.0x · ROE 3.5%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.4B | $999M | $2.1B | $3.1B | $2.2B | $3.8B | $2.7B | $1.8B | $1.1B | $1.8B | $633M |
| Enterprise Value | $3.0B | $2.6B | $3.6B | $4.6B | $3.6B | $4.6B | $3.5B | $2.5B | $1.7B | $2.2B | $984M |
| P/E Ratio → | 19.88 | 13.77 | 10.77 | 15.81 | 6.73 | 8.96 | 8.30 | 10.06 | 7.25 | 15.86 | 8.43 |
| P/S Ratio | 0.84 | 0.59 | 0.96 | 1.34 | 0.95 | 1.26 | 1.13 | 0.98 | 0.75 | 1.43 | 0.75 |
| P/B Ratio | 0.69 | 0.48 | 1.04 | 1.70 | 1.34 | 2.76 | 2.36 | 2.13 | 1.72 | 3.67 | 1.78 |
| P/FCF | — | — | — | — | — | 192.68 | 13.47 | — | — | — | — |
| P/OCF | — | — | — | — | — | 177.32 | 13.29 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.52 | 1.63 | 1.93 | 1.55 | 1.51 | 1.47 | 1.34 | 1.15 | 1.75 | 1.17 |
| EV / EBITDA | 36.04 | 30.85 | 16.64 | 19.36 | 9.12 | 8.40 | 9.55 | 10.76 | 8.63 | 12.92 | 8.74 |
| EV / EBIT | 37.99 | 26.34 | 13.83 | 19.56 | 9.15 | 8.41 | 9.45 | 10.63 | 8.60 | 12.96 | 8.79 |
| EV / FCF | — | — | — | — | — | 230.73 | 17.50 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.7% | 20.7% | 24.2% | 23.0% | 28.1% | 26.8% | 25.5% | 23.7% | 25.3% | 25.5% | 26.4% |
| Operating Margin | 4.7% | 4.7% | 9.6% | 9.9% | 16.9% | 18.0% | 15.4% | 12.4% | 13.3% | 13.5% | 13.3% |
| Net Profit Margin | 4.3% | 4.3% | 8.9% | 8.4% | 14.2% | 14.1% | 13.7% | 9.7% | 10.3% | 9.0% | 9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.5% | 3.5% | 10.1% | 11.4% | 21.5% | 33.9% | 32.6% | 23.8% | 27.1% | 26.8% | 24.9% |
| ROA | 1.9% | 1.9% | 5.5% | 6.1% | 11.9% | 20.6% | 18.5% | 11.7% | 12.5% | 12.0% | 10.4% |
| ROIC | 1.7% | 1.7% | 4.7% | 5.6% | 11.3% | 20.0% | 15.9% | 12.3% | 13.9% | 15.9% | 13.7% |
| ROCE | 2.1% | 2.1% | 6.2% | 7.5% | 14.9% | 27.3% | 24.1% | 17.6% | 17.6% | 19.7% | 17.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.79 | 0.79 | 0.75 | 0.79 | 0.86 | 0.58 | 0.74 | 0.82 | 1.00 | 0.97 | 1.13 |
| Debt / EBITDA | 19.70 | 19.70 | 7.08 | 6.20 | 3.59 | 1.48 | 2.30 | 3.05 | 3.26 | 2.79 | 3.56 |
| Net Debt / Equity | — | 0.76 | 0.72 | 0.76 | 0.84 | 0.54 | 0.71 | 0.78 | 0.93 | 0.83 | 0.99 |
| Net Debt / EBITDA | 18.97 | 18.97 | 6.83 | 6.00 | 3.51 | 1.38 | 2.20 | 2.88 | 3.02 | 2.39 | 3.12 |
| Debt / FCF | — | — | — | — | — | 38.06 | 4.03 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 223.39 | 223.39 | 25.16 | 24.41 | 18.84 | 26.80 | 21.34 | 4.15 | 15.36 | 8.98 | 13.37 |
| Quick Ratio | 5.79 | 5.79 | 0.59 | 0.69 | 0.36 | 1.32 | 1.88 | 0.25 | 1.04 | 0.98 | 1.13 |
| Cash Ratio | 3.79 | 3.79 | 0.39 | 0.37 | 0.20 | 0.62 | 0.45 | 0.10 | 0.54 | 0.59 | 0.84 |
| Asset Turnover | — | 0.43 | 0.59 | 0.69 | 0.74 | 1.30 | 1.30 | 1.10 | 1.08 | 1.16 | 1.03 |
| Inventory Turnover | 0.38 | 0.38 | 0.49 | 0.58 | 0.57 | 1.07 | 1.12 | 0.93 | 0.92 | 1.02 | 0.86 |
| Days Sales Outstanding | — | 6.95 | 4.76 | 6.39 | 3.98 | 6.93 | 17.87 | 11.20 | 10.39 | 12.97 | 7.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 7.3% | 9.3% | 6.3% | 14.9% | 11.2% | 12.1% | 9.9% | 13.8% | 6.3% | 11.9% |
| FCF Yield | — | — | — | — | — | 0.5% | 7.4% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 1.5% | 0.0% | 4.3% | 5.0% | 1.8% | 0.0% | 0.1% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 1.5% | 0.0% | 4.3% | 5.0% | 1.8% | 0.0% | 0.1% | 0.0% | 0.0% |
| Shares Outstanding | — | $23M | $24M | $24M | $24M | $25M | $25M | $25M | $25M | $24M | $22M |
Inventory liquidity and absorption
As reported in recent financial filings, LGIH trades at a forward P/E of 22.76, which appears disconnected from the company's 22.57% year-over-year revenue decline and suggests that the market may be overestimating the speed of a potential recovery in absorption rates within the current interest rate environment.
The current valuation premium relative to peers like D.R. Horton and Lennar, which trade at significantly lower P/E multiples, implies an expectation of rapid margin expansion that the current operating data does not support. Investors should monitor whether this valuation reflects a mispricing of the company's speculative inventory risk or an overly optimistic outlook on the entry-level housing market.
Based on quarterly data, LGIH's ROIC has trended toward zero, reaching -0.0% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital, a significant departure from the compounding returns observed in previous housing cycles.
The erosion of ROIC is primarily driven by the combination of margin compression and a bloated asset base that is not producing sufficient throughput. This trend suggests that the company's capital allocation strategy, particularly regarding land acquisition, may be misaligned with the current velocity of home sales.
According to the latest financial statements, LGIH's cash conversion cycle has ballooned to 1,224 days in 2026Q1, a figure that highlights the extreme inefficiency of the company's spec-heavy production model when absorption rates fail to meet the high-velocity targets required to sustain the business.
The massive days-in-inventory (DIO) of 1,223 days suggests that capital is being trapped in unsold homes for extended periods, creating a structural drag on liquidity. This inefficiency forces the company to rely on external financing or cash reserves to maintain operations, which is unsustainable if the current revenue contraction persists.
As noted in industry analysis, the P/B ratio of 0.73 is frequently misapplied to LGIH, as it obscures the underlying quality of the land bank and the potential for significant write-downs on speculative inventory that is currently sitting idle in a high-interest rate environment.
Investors should instead focus on the ratio of operating cash flow to net income, which better captures the company's inability to convert accounting profits into actual liquidity. Relying on book value ignores the reality that the company's primary assets are highly sensitive to market-clearing prices, which may be lower than the carrying value on the balance sheet.
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying LGIH stock.
LGI Homes, Inc.'s current P/E ratio is 19.9x. The historical average is 11.0x. This places it at the 100th percentile of its historical range.
LGI Homes, Inc.'s current EV/EBITDA is 36.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
LGI Homes, Inc.'s return on equity (ROE) is 3.5%. The historical average is 23.4%.
Based on historical data, LGI Homes, Inc. is trading at a P/E of 19.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
LGI Homes, Inc. has 20.7% gross margin and 4.7% operating margin.
LGI Homes, Inc.'s Debt/EBITDA ratio is 19.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.