What does Meritage Homes do?

Meritage Homes buys and develops land, then builds and sells single-family houses and attached homes across 12 U.S. states in the West, Texas, and the Southeast. Its homes are aimed mainly at first-time buyers and people buying their first bigger home. It also helps buyers close the deal by offering mortgages, title, escrow, and insurance services.

What is Meritage Homes's fair value?

On an owner-earnings DCF, Meritage Homes's most-likely fair value is about $110, versus a recent price near $59. A margin-of-safety estimate, not a price target. Analysis, not advice.

Consumer Cyclical · Residential Construction · MTH

What Meritage Homes Does & How It Makes Money (MTH)

Updated October 2026 · reflects Meritage Homes's latest reported financials

U.S. homebuilder of entry-level and first move-up single-family homes. Most of its revenue comes from selling newly built homes on land it has bought and developed.

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How Meritage Homes makes money

Most of its revenue comes from selling newly built homes on land it has bought and developed. It earns extra money by offering mortgage, title, escrow, insurance, and closing services to the people who buy its homes.

What Meritage Homes does

Meritage Homes Corporation is a U.S. residential builder founded in 1985 and based in Scottsdale, Arizona. It acquires and develops land and builds single-family detached and attached homes mainly for entry-level and first move-up buyers. It sells homes in Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. The company reports two segments, Homebuilding and Financial Services. Homebuilding covers land development, construction, marketing, and home sales. Financial Services supports those sales with mortgage, title and escrow, insurance, title insurance, and closing/settlement services for its homebuyers. Because it focuses on first-time and first move-up buyers, its business depends heavily on housing affordability and mortgage conditions.

Products & services

Single-family detached homes
Single-family attached homes
Entry-level and first move-up homes
Mortgage services
Title, escrow and closing/settlement services
Homeowners insurance and title insurance

What is Meritage Homes worth?

On an owner-earnings DCF, Meritage Homes's most-likely value is about $110 versus a recent price near $59 (87% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$64) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $59

Fair value (most likely)

$110

Range

$83–$158

No-growth floor

$64

Price

~$59

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Consumer Cyclical Industry Residential Construction HQ United States Ticker MTH Official site

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