Based on the provided data and current market conditions, DHI is not overvalued. Here's the analysis:
Valuation Metrics
The stock currently trades at attractive valuation multiples with forward P/E of 9.89x, EV/EBITDA of 7.45x, and P/B of 1.78x for Q1 2025, all of which are below historical averages and industry standards.
Financial Performance
DHI demonstrates strong financial execution with:
- Healthy gross margins of 25.22% in Q1 2025
- Solid ROE of 19.35%
- Strong current ratio of 5.51x indicating excellent liquidity
Recent Price Action
The stock has experienced a significant pullback from its December 2024 highs, dropping from around $170 to current levels near $129, creating a more attractive entry point.
Analyst Consensus
Recent analyst ratings show mixed but generally positive sentiment, with price targets ranging from $125 to $210, suggesting potential upside from current levels.