Meritage Homes Corp (MTH) is slightly overvalued and NVR Inc (NVR) is fairly valued.
Both trade above our estimate of their intrinsic value. NVR is the closer of the two: -4%, against -11% for MTH.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $59.65; the price of $66.40 is 11% above that value, and 75% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $6065.97; the price of $6338.92 is 4% above that value, and 75% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | MTH | NVR |
|---|---|---|
| Verdict | Slightly overvalued | Fairly valued |
| Price | $66.40 | $6338.92 |
| Intrinsic value | $59.65 | $6065.97 |
| Margin of safety | -11% | -4% |
| Leak Score | 27/100 (3/12) | 59/100 (3/12) |
| Market cap | $4.3B | $16.9B |
| Revenue growth, 5 years | 5.4% | 6.5% |
| Operating margin | 7.1% | 13.0% |
| Net margin | 6.1% | 12.2% |
| Return on equity | 6.4% | 31.5% |
| Debt to equity | 0.38 | 0.31 |
| P/E | 13.9x | 16.4x |
| Forward P/E | 11.2x | 15.8x |
| P/B | 0.9x | 4.8x |
| Dividend yield | 2.9% | — |