Meritage Homes Corp (MTH) is slightly overvalued and Champion Homes Inc (SKY) is slightly overvalued.
Both trade above our estimate of their intrinsic value. MTH is the closer of the two: -11%, against -20% for SKY.
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 9.9% (average of 3 methods) values the shares at $74.32; the price of $88.84 is 20% above that value, and 74% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | MTH | SKY |
|---|---|---|
| Verdict | Slightly overvalued | Slightly overvalued |
| Price | $66.40 | $88.84 |
| Intrinsic value | $59.65 | $74.32 |
| Margin of safety | -11% | -20% |
| Leak Score | 27/100 (3/12) | 59/100 (3/12) |
| Market cap | $4.3B | $4.8B |
| Revenue growth, 5 years | 5.4% | 13.4% |
| Operating margin | 7.1% | 8.9% |
| Net margin | 6.1% | 7.2% |
| Return on equity | 6.4% | 12.2% |
| Debt to equity | 0.38 | 0.08 |
| P/E | 13.9x | 26.0x |
| Forward P/E | 11.2x | 20.8x |
| P/B | 0.9x | 3.1x |
| Dividend yield | 2.9% | — |