DFH Valuation

Dream Finders Homes Inc

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29.660

+2.17(7.894%)1D

Overview
Forecast
Valuation
Earnings

DFH Relative Valuation

DFH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DFH is overvalued; if below, it's undervalued.

Historical Valuation

Dream Finders Homes Inc (DFH) is now in the Fair zone, suggesting that its current forward PE ratio of 8.52 is considered Fairly compared with the five-year average of 9.11. The fair price of Dream Finders Homes Inc (DFH) is between 26.16 to 47.21 according to relative valuation methord.

Relative Value

Fair Zone

26.16-47.21

Current Price：29.66

Fair

8.52

Trailing

Forward

7.99

EV/EBITDA

Dream Finders Homes Inc. (DFH) has a current EV/EBITDA of 7.99. The 5-year average EV/EBITDA is 6.75. The thresholds are as follows: Strongly Undervalued below 2.83, Undervalued between 2.83 and 4.79, Fairly Valued between 8.71 and 4.79, Overvalued between 8.71 and 10.67, and Strongly Overvalued above 10.67. The current Forward EV/EBITDA of 7.99 falls within the Historic Trend Line -Fairly Valued range.

8.26

EV/EBIT

Dream Finders Homes Inc. (DFH) has a current EV/EBIT of 8.26. The 5-year average EV/EBIT is 8.24. The thresholds are as follows: Strongly Undervalued below 3.04, Undervalued between 3.04 and 5.64, Fairly Valued between 10.84 and 5.64, Overvalued between 10.84 and 13.44, and Strongly Overvalued above 13.44. The current Forward EV/EBIT of 8.26 falls within the Historic Trend Line -Fairly Valued range.

0.55

Dream Finders Homes Inc. (DFH) has a current PS of 0.55. The 5-year average PS is 0.60. The thresholds are as follows: Strongly Undervalued below 0.15, Undervalued between 0.15 and 0.38, Fairly Valued between 0.83 and 0.38, Overvalued between 0.83 and 1.06, and Strongly Overvalued above 1.06. The current Forward PS of 0.55 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Dream Finders Homes Inc. (DFH) has a current P/OCF of 0.00. The 5-year average P/OCF is 1.61. The thresholds are as follows: Strongly Undervalued below -65.40, Undervalued between -65.40 and -31.89, Fairly Valued between 35.12 and -31.89, Overvalued between 35.12 and 68.63, and Strongly Overvalued above 68.63. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Dream Finders Homes Inc. (DFH) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Dream Finders Homes Inc (DFH) has a current Price-to-Book (P/B) ratio of 2.08. Compared to its 3-year average P/B ratio of 2.46 , the current P/B ratio is approximately -15.58% higher. Relative to its 5-year average P/B ratio of 4.16, the current P/B ratio is about -50.07% higher. Dream Finders Homes Inc (DFH) has a Forward Free Cash Flow (FCF) yield of approximately -1.83%. Compared to its 3-year average FCF yield of -0.14%, the current FCF yield is approximately 1214.72% lower. Relative to its 5-year average FCF yield of 0.16% , the current FCF yield is about -1210.23% lower.

2.08

P/B

Median3y

2.46

Median5y

4.16

-1.83

FCF Yield

Median3y

-0.14

Median5y

0.16

Competitors Valuation Multiple

The average P/S ratio for DFH's competitors is 0.87, providing a benchmark for relative valuation. Dream Finders Homes Inc Corp (DFH) exhibits a P/S ratio of 0.55, which is -36.97% above the industry average. Given its robust revenue growth of 8.98%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DFH.N

Dream Finders Homes Inc

Green Brick Partners Inc

Tri Pointe Homes Inc (Delaware)

Century Communities Inc

Patrick Industries Inc

0.96

3.04%

3.86B

Performance Decomposition

Market capitalization of DFH decreased by 11.33% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.25 to 9.65.

The secondary factor is the Revenue Growth, contributed 8.98%to the performance.

Overall, the performance of DFH in the past 1 year is driven by P/E Change. Which is more unsustainable.

8.98%

1.06B → 1.15B

Revenue Growth

-37.37%

7.84 → 4.91

Margin Expansion

17.06%

8.25 → 9.65

P/E Change

-11.33%