Intrinsic value of LGI Homes - LGIH

Previous Close

$61.74

  Intrinsic Value

$1,110

stock screener

  Rating & Target

str. buy

+999%

Previous close

$61.74

 
Intrinsic value

$1,110

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of LGIH stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  50.10
  45.59
  41.53
  37.88
  34.59
  31.63
  28.97
  26.57
  24.41
  22.47
  20.73
  19.15
  17.74
  16.46
  15.32
  14.29
  13.36
  12.52
  11.77
  11.09
  10.48
  9.93
  9.44
  9.00
  8.60
  8.24
  7.91
  7.62
  7.36
  7.12
Revenue, $m
  1,888
  2,749
  3,891
  5,365
  7,220
  9,504
  12,257
  15,514
  19,302
  23,639
  28,539
  34,005
  40,036
  46,628
  53,770
  61,451
  69,660
  78,382
  87,607
  97,325
  107,527
  118,210
  129,370
  141,010
  153,133
  165,748
  178,865
  192,499
  206,668
  221,392
Variable operating expenses, $m
  1,625
  2,366
  3,348
  4,615
  6,211
  8,175
  10,543
  13,344
  16,602
  20,332
  24,545
  29,246
  34,433
  40,102
  46,245
  52,851
  59,910
  67,412
  75,346
  83,704
  92,478
  101,666
  111,265
  121,275
  131,702
  142,551
  153,832
  165,558
  177,744
  190,407
Fixed operating expenses, $m
  5
  5
  5
  5
  6
  6
  6
  6
  6
  6
  6
  6
  7
  7
  7
  7
  7
  7
  8
  8
  8
  8
  8
  8
  9
  9
  9
  9
  9
  10
Total operating expenses, $m
  1,630
  2,371
  3,353
  4,620
  6,217
  8,181
  10,549
  13,350
  16,608
  20,338
  24,551
  29,252
  34,440
  40,109
  46,252
  52,858
  59,917
  67,419
  75,354
  83,712
  92,486
  101,674
  111,273
  121,283
  131,711
  142,560
  153,841
  165,567
  177,753
  190,417
Operating income, $m
  258
  378
  538
  744
  1,004
  1,323
  1,708
  2,164
  2,694
  3,301
  3,988
  4,753
  5,597
  6,519
  7,518
  8,593
  9,742
  10,962
  12,253
  13,613
  15,041
  16,536
  18,098
  19,726
  21,423
  23,188
  25,024
  26,932
  28,915
  30,975
EBITDA, $m
  403
  589
  836
  1,155
  1,556
  2,050
  2,645
  3,349
  4,168
  5,106
  6,165
  7,347
  8,651
  10,077
  11,621
  13,282
  15,057
  16,943
  18,938
  21,039
  23,245
  25,555
  27,969
  30,486
  33,107
  35,835
  38,671
  41,620
  44,683
  47,867
Interest expense (income), $m
  14
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Earnings before tax, $m
  258
  378
  538
  744
  1,004
  1,323
  1,708
  2,164
  2,694
  3,301
  3,988
  4,753
  5,597
  6,519
  7,518
  8,593
  9,742
  10,962
  12,253
  13,613
  15,041
  16,536
  18,098
  19,726
  21,423
  23,188
  25,024
  26,932
  28,915
  30,975
Tax expense, $m
  70
  102
  145
  201
  271
  357
  461
  584
  727
  891
  1,077
  1,283
  1,511
  1,760
  2,030
  2,320
  2,630
  2,960
  3,308
  3,676
  4,061
  4,465
  4,886
  5,326
  5,784
  6,261
  6,756
  7,272
  7,807
  8,363
Net income, $m
  188
  276
  393
  543
  733
  966
  1,247
  1,580
  1,967
  2,410
  2,911
  3,469
  4,086
  4,759
  5,488
  6,273
  7,112
  8,003
  8,945
  9,938
  10,980
  12,071
  13,211
  14,400
  15,639
  16,927
  18,267
  19,660
  21,108
  22,612

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  -964
  -1,404
  -1,987
  -2,740
  -3,688
  -4,854
  -6,260
  -7,923
  -9,858
  -12,073
  -14,575
  -17,367
  -20,448
  -23,814
  -27,462
  -31,385
  -35,577
  -40,032
  -44,743
  -49,706
  -54,917
  -60,373
  -66,073
  -72,017
  -78,209
  -84,652
  -91,351
  -98,314
  -105,551
  -113,070
Adjusted assets (=assets-cash), $m
  -964
  -1,404
  -1,987
  -2,740
  -3,688
  -4,854
  -6,260
  -7,923
  -9,858
  -12,073
  -14,575
  -17,367
  -20,448
  -23,814
  -27,462
  -31,385
  -35,577
  -40,032
  -44,743
  -49,706
  -54,917
  -60,373
  -66,073
  -72,017
  -78,209
  -84,652
  -91,351
  -98,314
  -105,551
  -113,070
Revenue / Adjusted assets
  -1.959
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
  -1.958
Average production assets, $m
  1,441
  2,098
  2,969
  4,093
  5,509
  7,252
  9,352
  11,837
  14,727
  18,037
  21,775
  25,946
  30,548
  35,577
  41,027
  46,887
  53,150
  59,805
  66,844
  74,259
  82,043
  90,194
  98,710
  107,591
  116,841
  126,466
  136,474
  146,877
  157,688
  168,922
Working capital, $m
  -867
  -1,262
  -1,786
  -2,462
  -3,314
  -4,362
  -5,626
  -7,121
  -8,860
  -10,850
  -13,099
  -15,608
  -18,377
  -21,402
  -24,680
  -28,206
  -31,974
  -35,977
  -40,212
  -44,672
  -49,355
  -54,258
  -59,381
  -64,724
  -70,288
  -76,078
  -82,099
  -88,357
  -94,861
  -101,619
Total debt, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total liabilities, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total equity, $m
  -964
  -1,404
  -1,987
  -2,740
  -3,688
  -4,854
  -6,260
  -7,923
  -9,858
  -12,073
  -14,575
  -17,367
  -20,448
  -23,814
  -27,462
  -31,385
  -35,577
  -40,032
  -44,743
  -49,706
  -54,917
  -60,373
  -66,073
  -72,017
  -78,209
  -84,652
  -91,351
  -98,314
  -105,551
  -113,070
Total liabilities and equity, $m
  -964
  -1,404
  -1,987
  -2,740
  -3,688
  -4,854
  -6,260
  -7,923
  -9,858
  -12,073
  -14,575
  -17,367
  -20,448
  -23,814
  -27,462
  -31,385
  -35,577
  -40,032
  -44,743
  -49,706
  -54,917
  -60,373
  -66,073
  -72,017
  -78,209
  -84,652
  -91,351
  -98,314
  -105,551
  -113,070
Debt-to-equity ratio
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
Adjusted equity ratio
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  188
  276
  393
  543
  733
  966
  1,247
  1,580
  1,967
  2,410
  2,911
  3,469
  4,086
  4,759
  5,488
  6,273
  7,112
  8,003
  8,945
  9,938
  10,980
  12,071
  13,211
  14,400
  15,639
  16,927
  18,267
  19,660
  21,108
  22,612
Depreciation, amort., depletion, $m
  145
  211
  298
  411
  552
  726
  936
  1,185
  1,474
  1,805
  2,178
  2,595
  3,055
  3,558
  4,103
  4,689
  5,315
  5,981
  6,684
  7,426
  8,204
  9,019
  9,871
  10,759
  11,684
  12,647
  13,647
  14,688
  15,769
  16,892
Funds from operations, $m
  334
  487
  691
  954
  1,285
  1,692
  2,184
  2,765
  3,441
  4,215
  5,089
  6,064
  7,140
  8,317
  9,591
  10,962
  12,427
  13,983
  15,629
  17,364
  19,184
  21,091
  23,082
  25,159
  27,323
  29,574
  31,915
  34,348
  36,876
  39,504
Change in working capital, $m
  -289
  -395
  -524
  -676
  -852
  -1,048
  -1,264
  -1,495
  -1,739
  -1,991
  -2,249
  -2,509
  -2,769
  -3,026
  -3,278
  -3,526
  -3,768
  -4,004
  -4,234
  -4,460
  -4,683
  -4,903
  -5,123
  -5,343
  -5,565
  -5,790
  -6,021
  -6,258
  -6,503
  -6,758
Cash from operations, $m
  623
  882
  1,215
  1,630
  2,137
  2,741
  3,447
  4,260
  5,179
  6,206
  7,337
  8,573
  9,909
  11,342
  12,869
  14,488
  16,194
  17,987
  19,864
  21,824
  23,867
  25,994
  28,205
  30,502
  32,887
  35,364
  37,936
  40,606
  43,380
  46,262
Maintenance CAPEX, $m
  -96
  -144
  -210
  -297
  -409
  -551
  -725
  -935
  -1,184
  -1,473
  -1,804
  -2,178
  -2,595
  -3,055
  -3,558
  -4,103
  -4,689
  -5,315
  -5,981
  -6,684
  -7,426
  -8,204
  -9,019
  -9,871
  -10,759
  -11,684
  -12,647
  -13,647
  -14,688
  -15,769
New CAPEX, $m
  -481
  -657
  -871
  -1,124
  -1,416
  -1,743
  -2,101
  -2,485
  -2,890
  -3,310
  -3,738
  -4,171
  -4,602
  -5,029
  -5,449
  -5,861
  -6,263
  -6,655
  -7,039
  -7,415
  -7,785
  -8,151
  -8,516
  -8,881
  -9,250
  -9,625
  -10,008
  -10,403
  -10,811
  -11,234
Cash from investing activities, $m
  -577
  -801
  -1,081
  -1,421
  -1,825
  -2,294
  -2,826
  -3,420
  -4,074
  -4,783
  -5,542
  -6,349
  -7,197
  -8,084
  -9,007
  -9,964
  -10,952
  -11,970
  -13,020
  -14,099
  -15,211
  -16,355
  -17,535
  -18,752
  -20,009
  -21,309
  -22,655
  -24,050
  -25,499
  -27,003
Free cash flow, $m
  46
  81
  134
  209
  311
  447
  621
  839
  1,105
  1,423
  1,795
  2,225
  2,712
  3,258
  3,862
  4,524
  5,243
  6,017
  6,844
  7,725
  8,657
  9,639
  10,670
  11,750
  12,878
  14,055
  15,281
  16,556
  17,881
  19,259
Issuance/(repayment) of debt, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Issuance/(repurchase) of shares, $m
  -322
  -440
  -583
  -753
  -948
  -1,166
  -1,406
  -1,663
  -1,934
  -2,215
  -2,502
  -2,792
  -3,080
  -3,366
  -3,648
  -3,923
  -4,192
  -4,455
  -4,711
  -4,963
  -5,211
  -5,456
  -5,700
  -5,945
  -6,192
  -6,443
  -6,699
  -6,963
  -7,236
  -7,520
Cash from financing (excl. dividends), $m  
  -322
  -440
  -583
  -753
  -948
  -1,166
  -1,406
  -1,663
  -1,934
  -2,215
  -2,502
  -2,792
  -3,080
  -3,366
  -3,648
  -3,923
  -4,192
  -4,455
  -4,711
  -4,963
  -5,211
  -5,456
  -5,700
  -5,945
  -6,192
  -6,443
  -6,699
  -6,963
  -7,236
  -7,520
Total cash flow (excl. dividends), $m
  -276
  -358
  -449
  -544
  -636
  -719
  -785
  -824
  -829
  -792
  -707
  -567
  -368
  -108
  214
  601
  1,050
  1,562
  2,133
  2,762
  3,446
  4,183
  4,970
  5,805
  6,687
  7,612
  8,581
  9,592
  10,645
  11,739
Retained Cash Flow (-), $m
  322
  440
  583
  753
  948
  1,166
  1,406
  1,663
  1,934
  2,215
  2,502
  2,792
  3,080
  3,366
  3,648
  3,923
  4,192
  4,455
  4,711
  4,963
  5,211
  5,456
  5,700
  5,945
  6,192
  6,443
  6,699
  6,963
  7,236
  7,520
Prev. year cash balance distribution, $m
  642
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  4
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  140
  161
  184
  209
  235
  263
  292
  323
  355
  388
  423
  459
  497
  537
  577
  620
Cash available for distribution, $m
  688
  440
  583
  753
  948
  1,166
  1,406
  1,663
  1,934
  2,215
  2,502
  2,792
  3,080
  3,366
  3,862
  4,524
  5,243
  6,017
  6,844
  7,725
  8,657
  9,639
  10,670
  11,750
  12,878
  14,055
  15,281
  16,556
  17,881
  19,259
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  660
  402
  507
  620
  735
  847
  950
  1,040
  1,111
  1,161
  1,188
  1,191
  1,171
  1,130
  1,134
  1,150
  1,141
  1,108
  1,054
  982
  895
  800
  699
  598
  501
  410
  328
  256
  195
  145
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

LGI Homes, Inc. is a homebuilder and land developer. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington and Tennessee. The Company operates through five segments: the Texas division, the Southwest division, the Southeast division, the Florida division and the Northwest division. The Texas division includes homebuilding operations in Houston, Dallas/Fort Worth, San Antonio and Austin locations. The Southwest division includes homebuilding operations in Phoenix, Tucson, Albuquerque, Denver and Colorado Springs locations. The Southeast division includes homebuilding operations in Atlanta, Charlotte and Nashville locations. The Florida division includes homebuilding operations in Tampa, Orlando, Fort Myers and Jacksonville locations. The Northwest division includes homebuilding operations in Seattle location.

FINANCIAL RATIOS  of  LGI Homes (LGIH)

Valuation Ratios
P/E Ratio 17.5
Price to Sales 1.6
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow -12.2
Price to Free Cash Flow -12.1
Growth Rates
Sales Growth Rate 33%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 0%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 112.7%
Total Debt to Equity 112.7%
Interest Coverage 9
Management Effectiveness
Return On Assets 11.7%
Ret/ On Assets - 3 Yr. Avg. 10.8%
Return On Total Capital 11.5%
Ret/ On T. Cap. - 3 Yr. Avg. 10.7%
Return On Equity 24.9%
Return On Equity - 3 Yr. Avg. 21.9%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 26.5%
Gross Margin - 3 Yr. Avg. 26.6%
EBITDA Margin 15.4%
EBITDA Margin - 3 Yr. Avg. 14.1%
Operating Margin 13.2%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 13.6%
Pre-Tax Margin - 3 Yr. Avg. 12.5%
Net Profit Margin 8.9%
Net Profit Margin - 3 Yr. Avg. 8.2%
Effective Tax Rate 34.2%
Eff/ Tax Rate - 3 Yr. Avg. 34.3%
Payout Ratio 0%

LGIH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LGIH stock intrinsic value calculation we used $1258 million for the last fiscal year's total revenue generated by LGI Homes. The default revenue input number comes from 2017 income statement of LGI Homes. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our LGIH stock valuation model: a) initial revenue growth rate of 50.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for LGIH is calculated based on our internal credit rating of LGI Homes, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of LGI Homes.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of LGIH stock the variable cost ratio is equal to 86.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5 million in the base year in the intrinsic value calculation for LGIH stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for LGI Homes.

Corporate tax rate of 27% is the nominal tax rate for LGI Homes. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the LGIH stock is equal to 0.3%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for LGIH are equal to 76.3%.

Life of production assets of 10 years is the average useful life of capital assets used in LGI Homes operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for LGIH is equal to -45.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $0 million for LGI Homes - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 22 million for LGI Homes is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of LGI Homes at the current share price and the inputted number of shares is $1.4 billion.

RELATED COMPANIES Price Int.Val. Rating
TOL Toll Brothers 38.05 91.56  str.buy
LEN Lennar Cl A 55.14 113.93  str.buy
KBH KB Home 26.99 168.65  str.buy
MDC M.D.C. Holding 32.67 70.36  str.buy
DHI D.R. Horton 43.28 68.44  str.buy
HOV Hovnanian Ente 1.72 21.54  str.buy
BZH Beazer Homes U 15.70 94.78  str.buy
MTH Meritage Homes 46.40 58.75  buy
MHO M/I Homes 28.12 160.78  str.buy
WLH William Lyon H 24.57 281.57  str.buy

COMPANY NEWS

▶ 3 Top Stocks Wall Street Is Overlooking   [Jul-11-18 08:18PM  Motley Fool]
▶ LGI Homes Opens First Community in Oregon   [Jul-02-18 07:00AM  GlobeNewswire]
▶ The 2 Best Homebuilder Stocks to Buy   [Jun-30-18 04:47PM  Motley Fool]
▶ Stocks rally despite ongoing uncertainty over trade   [Jun-26-18 11:21AM  Yahoo Finance]
▶ 10 Blue-Chip Consumer Stocks to Buy   [Jun-15-18 01:35PM  InvestorPlace]
▶ LGI Homes Announces First Community in Alabama   [Jun-11-18 07:00AM  GlobeNewswire]
▶ 3 Top Value Stocks to Buy in June   [Jun-08-18 08:16AM  Motley Fool]
▶ Stocks mixed, Trump reaches deal on ZTE   [Jun-07-18 11:32AM  Yahoo Finance]
▶ Yahoo Finance Live: Midday Movers - Jun 7th, 2018   [09:40AM  Yahoo Finance Video]
▶ Home prices expected to rise faster than wage growth & inflation   [Jun-06-18 01:12PM  Yahoo Finance Video]
▶ LGI Homes, Inc. Reports May 2018 Home Closings   [Jun-05-18 06:32PM  GlobeNewswire]
▶ 3 Top Stocks You Can Buy on Sale   [Jun-04-18 09:01PM  Motley Fool]
▶ 3 Top Growth Stocks to Buy Right Now   [Jun-03-18 09:02AM  Motley Fool]
▶ Can LGI Homes Maintain This Staggering Growth Rate?   [May-29-18 10:25AM  Motley Fool]
▶ LGI Homes Crushed Earnings Views With Stock Already In Buy Zone   [May-08-18 09:50AM  Investor's Business Daily]
▶ LGI Homes: 1Q Earnings Snapshot   [09:16AM  Associated Press]
▶ Three Homebuilders for Your Watchlist   [May-05-18 01:58PM  Motley Fool]
▶ These 6 Top Stocks Are Near Buy Points With Earnings Due   [08:00AM  Investor's Business Daily]
▶ LGI Homes, Inc. Reports April 2018 Home Closings   [May-03-18 07:53PM  GlobeNewswire]
▶ 3 Rules For How To Buy Stocks Like Salesforce During Earnings Season   [Apr-20-18 04:08PM  Investor's Business Daily]
▶ LGI Homes Commences Operations in Oklahoma City   [Apr-11-18 07:00AM  GlobeNewswire]
▶ 3 High-Growth Stocks That Are Just Getting Started   [Apr-09-18 08:02AM  Motley Fool]
▶ Top Stock LGI Homes Breaks Out To Buy Zone On Strong Growth   [Apr-05-18 04:04PM  Investor's Business Daily]
▶ 3 Stocks That Have Doubled and Still Have Room to Grow   [Mar-24-18 11:21AM  Motley Fool]
▶ Top Homebuilder KB Home Gaps Up On 167% Earnings Gain, Bullish Outlook   [Mar-23-18 04:08PM  Investor's Business Daily]
▶ LGI Homes Introduces New Community in the Queen City   [Mar-22-18 07:00AM  GlobeNewswire]
▶ LGI Homes Opens New Section in Honey Farms Community   [Mar-20-18 07:00AM  GlobeNewswire]
▶ LGI Homes Opens New Community in North Dallas   [Mar-15-18 07:00AM  GlobeNewswire]
▶ LGI Homes, Inc. Reports February 2018 Home Closings   [Mar-05-18 07:16PM  GlobeNewswire]
▶ LGI Homes, Toll Bros. Top Earnings Views, But Stocks Tumble   [Feb-27-18 04:04PM  Investor's Business Daily]
▶ LGI Homes, Toll Bros. Top Earnings Views, But Stocks Tumble   [02:50PM  Investor's Business Daily]
▶ LGI Homes tops Street 4Q forecasts   [10:33AM  Associated Press]
▶ LGI Homes, Inc. to Host Earnings Call   [10:05AM  ACCESSWIRE]
▶ LGI Homes, Inc. to Host Earnings Call   [09:50AM  ACCESSWIRE]
▶ 3 Stocks I Bought When They Fell More Than 20%   [Feb-16-18 06:03AM  Motley Fool]
▶ This Too Shall Pass   [Feb-12-18 12:30PM  TheStreet.com]
▶ LGI Homes Introduces Townhomes in Nashville Market   [Feb-07-18 07:00AM  GlobeNewswire]
▶ LGI Homes, Inc. Reports January 2018 Home Closings   [Feb-05-18 05:41PM  GlobeNewswire]
▶ Ride the Momentum With These 4 Hot Stocks   [Feb-01-18 02:35PM  InvestorPlace]
▶ 5 Texas Stocks You Can Buy Now   [Jan-25-18 06:02AM  Motley Fool]
▶ Ride the Momentum With These 4 Hot Stocks   [Jan-18-18 09:00AM  Zacks]
▶ LGI Homes Expands Into New Community in Dallas   [Jan-11-18 07:00AM  GlobeNewswire]
▶ Anatomy of Success: LGI Homes (LGIH)   [Jan-02-18 03:46PM  Zacks]
▶ What to expect from the housing market in 2018   [Dec-29-17 10:31AM  Yahoo Finance]
▶ LGI Homes Now Open at Newport on Lake Houston   [Dec-27-17 07:00AM  GlobeNewswire]
▶ ETFs with exposure to LGI Homes, Inc. : December 25, 2017   [Dec-25-17 12:05PM  Capital Cube]
▶ LGI Homes Opens New Community in Houston   [Dec-14-17 06:00PM  GlobeNewswire]
▶ ETFs with exposure to LGI Homes, Inc. : December 12, 2017   [Dec-12-17 01:31PM  Capital Cube]
▶ Silicon Valley Is One of Three Big Winners From Tax Reform   [Dec-10-17 12:00PM  TheStreet.com]
▶ LGI Homes, Inc. Reports November 2017 Home Closings   [Dec-05-17 06:54PM  GlobeNewswire]
▶ ETFs with exposure to LGI Homes, Inc. : November 27, 2017   [Nov-27-17 02:32PM  Capital Cube]
▶ 5 Small Growth Stocks With Big Upside: Wasatch   [Nov-08-17 08:00AM  Investopedia]
▶ LGI Homes beats Street 3Q forecasts   [Nov-07-17 07:21AM  Associated Press]
▶ LGI Homes, Inc. Reports October 2017 Home Closings   [Nov-03-17 06:01PM  GlobeNewswire]
▶ 4 Best Performing Stocks of October   [Nov-01-17 09:57AM  Zacks]
▶ 7 Amazing Investments on America's New Housing Boom   [Oct-25-17 10:00PM  TheStreet.com]
▶ LGI Homes to Host 2017 Third Quarter Conference Call   [Oct-23-17 06:00PM  GlobeNewswire]
▶ 3 Top Housing Stocks   [Oct-18-17 01:16PM  Motley Fool]
▶ Netflix Breaks Out While Homebuilders Add To Rally   [Oct-05-17 03:30PM  Investor's Business Daily]
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