DHI PE Ratio & Valuation,Is DHI Overvalued

DHI Relative Valuation

DHI'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, DHI is overvalued; if below, it's undervalued.

Historical Valuation

DR Horton Inc (DHI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 13.75 is considered Overvalued compared with the five-year average of 8.98. The fair price of DR Horton Inc (DHI) is between 90.85 to 140.93 according to relative valuation methord. Compared to the current price of 156.24 USD , DR Horton Inc is Overvalued By 10.86%.

Relative Value

Fair Zone

90.85-140.93

Current Price：156.24

10.86%

Overvalued

13.76

10.35

EV/EBITDA

DR Horton Inc. (DHI) has a current EV/EBITDA of 10.35. The 5-year average EV/EBITDA is 7.16. The thresholds are as follows: Strongly Undervalued below 3.09, Undervalued between 3.09 and 5.12, Fairly Valued between 9.20 and 5.12, Overvalued between 9.20 and 11.23, and Strongly Overvalued above 11.23. The current Forward EV/EBITDA of 10.35 falls within the Overvalued range.

12.79

EV/EBIT

DR Horton Inc. (DHI) has a current EV/EBIT of 12.79. The 5-year average EV/EBIT is 8.47. The thresholds are as follows: Strongly Undervalued below 3.17, Undervalued between 3.17 and 5.82, Fairly Valued between 11.12 and 5.82, Overvalued between 11.12 and 13.77, and Strongly Overvalued above 13.77. The current Forward EV/EBIT of 12.79 falls within the Overvalued range.

1.33

DR Horton Inc. (DHI) has a current PS of 1.33. The 5-year average PS is 1.13. The thresholds are as follows: Strongly Undervalued below 0.67, Undervalued between 0.67 and 0.90, Fairly Valued between 1.35 and 0.90, Overvalued between 1.35 and 1.58, and Strongly Overvalued above 1.58. The current Forward PS of 1.33 falls within the Historic Trend Line -Fairly Valued range.

14.77

P/OCF

DR Horton Inc. (DHI) has a current P/OCF of 14.77. The 5-year average P/OCF is 14.06. The thresholds are as follows: Strongly Undervalued below 5.01, Undervalued between 5.01 and 9.54, Fairly Valued between 18.58 and 9.54, Overvalued between 18.58 and 23.10, and Strongly Overvalued above 23.10. The current Forward P/OCF of 14.77 falls within the Historic Trend Line -Fairly Valued range.

17.93

P/FCF

DR Horton Inc. (DHI) has a current P/FCF of 17.93. The 5-year average P/FCF is 12.76. The thresholds are as follows: Strongly Undervalued below 4.04, Undervalued between 4.04 and 8.40, Fairly Valued between 17.12 and 8.40, Overvalued between 17.12 and 21.47, and Strongly Overvalued above 21.47. The current Forward P/FCF of 17.93 falls within the Overvalued range.

DR Horton Inc (DHI) has a current Price-to-Book (P/B) ratio of 1.90. Compared to its 3-year average P/B ratio of 1.91 , the current P/B ratio is approximately -0.08% higher. Relative to its 5-year average P/B ratio of 1.94, the current P/B ratio is about -1.89% higher. DR Horton Inc (DHI) has a Forward Free Cash Flow (FCF) yield of approximately 7.19%. Compared to its 3-year average FCF yield of 6.18%, the current FCF yield is approximately 16.28% lower. Relative to its 5-year average FCF yield of 4.25% , the current FCF yield is about 68.98% lower.

1.91

P/B

Median3y

1.91

Median5y

1.94

7.19

FCF Yield

Median3y

6.18

Median5y

4.25

Competitors Valuation Multiple

The average P/S ratio for DHI's competitors is , providing a benchmark for relative valuation. DR Horton Inc Corp (DHI) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -3.25%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DHI increased by 11.91% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.51 to 13.53.

The secondary factor is the Revenue Growth, contributed -3.25%to the performance.

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

-3.25%

10.00B → 9.68B

Revenue Growth

-27.10%

12.99 → 9.47

Margin Expansion

42.26%

9.51 → 13.53

P/E Change

11.91%

139.82 → 156.47

Mkt Cap Growth

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Frequently Asked Questions

Is DR Horton Inc (DHI) currently overvalued or undervalued?

What is DR Horton Inc (DHI) fair value?

DHI'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. The fair price of DR Horton Inc (DHI) is between 90.85 to 140.93 according to relative valuation methord.

How does DHI's valuation metrics compare to the industry average?

What is the current P/B ratio for DR Horton Inc (DHI) as of Dec 16 2025?

As of Dec 16 2025, DR Horton Inc (DHI) has a P/B ratio of 1.90. This indicates that the market values DHI at 1.90 times its book value.

What is the current FCF Yield for DR Horton Inc (DHI) as of Dec 16 2025?

As of Dec 16 2025, DR Horton Inc (DHI) has a FCF Yield of 7.19%. This means that for every dollar of DR Horton Inc’s market capitalization, the company generates 7.19 cents in free cash flow.

What is the current Forward P/E ratio for DR Horton Inc (DHI) as of Dec 16 2025?

As of Dec 16 2025, DR Horton Inc (DHI) has a Forward P/E ratio of 13.75. This means the market is willing to pay $13.75 for every dollar of DR Horton Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for DR Horton Inc (DHI) as of Dec 16 2025?

As of Dec 16 2025, DR Horton Inc (DHI) has a Forward P/S ratio of 1.33. This means the market is valuing DHI at $1.33 for every dollar of expected revenue over the next 12 months.

DHI Valuation