DHI Valuation

DR Horton Inc

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158.260

+3.3(2.130%)1D

Overview
Forecast
Valuation
Earnings

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 12.95 is considered Overvalued compared with the five-year average of 8.59. The fair price of DR Horton Inc (DHI) is between 94.04 to 142.38 according to relative valuation methord. Compared to the current price of 157.87 USD , DR Horton Inc is Overvalued By 10.88%.

Relative Value

Fair Zone

94.04-142.38

Current Price：157.87

10.88%

Overvalued

13.14

Trailing

Forward

10.41

EV/EBITDA

DR Horton Inc. (DHI) has a current EV/EBITDA of 10.41. The 5-year average EV/EBITDA is 6.86. The thresholds are as follows: Strongly Undervalued below 3.23, Undervalued between 3.23 and 5.04, Fairly Valued between 8.67 and 5.04, Overvalued between 8.67 and 10.49, and Strongly Overvalued above 10.49. The current Forward EV/EBITDA of 10.41 falls within the Overvalued range.

12.68

EV/EBIT

DR Horton Inc. (DHI) has a current EV/EBIT of 12.68. The 5-year average EV/EBIT is 8.06. The thresholds are as follows: Strongly Undervalued below 3.35, Undervalued between 3.35 and 5.71, Fairly Valued between 10.42 and 5.71, Overvalued between 10.42 and 12.77, and Strongly Overvalued above 12.77. The current Forward EV/EBIT of 12.68 falls within the Overvalued range.

1.34

DR Horton Inc. (DHI) has a current PS of 1.34. The 5-year average PS is 1.10. The thresholds are as follows: Strongly Undervalued below 0.67, Undervalued between 0.67 and 0.89, Fairly Valued between 1.32 and 0.89, Overvalued between 1.32 and 1.54, and Strongly Overvalued above 1.54. The current Forward PS of 1.34 falls within the Overvalued range.

13.13

P/OCF

DR Horton Inc. (DHI) has a current P/OCF of 13.13. The 5-year average P/OCF is 15.26. The thresholds are as follows: Strongly Undervalued below 1.50, Undervalued between 1.50 and 8.38, Fairly Valued between 22.14 and 8.38, Overvalued between 22.14 and 29.02, and Strongly Overvalued above 29.02. The current Forward P/OCF of 13.13 falls within the Historic Trend Line -Fairly Valued range.

15.52

P/FCF

DR Horton Inc. (DHI) has a current P/FCF of 15.52. The 5-year average P/FCF is 13.31. The thresholds are as follows: Strongly Undervalued below 2.67, Undervalued between 2.67 and 7.99, Fairly Valued between 18.64 and 7.99, Overvalued between 18.64 and 23.96, and Strongly Overvalued above 23.96. The current Forward P/FCF of 15.52 falls within the Historic Trend Line -Fairly Valued range.

DR Horton Inc (DHI) has a current Price-to-Book (P/B) ratio of 1.93. Compared to its 3-year average P/B ratio of 1.84 , the current P/B ratio is approximately 4.55% higher. Relative to its 5-year average P/B ratio of 1.97, the current P/B ratio is about -2.10% higher. DR Horton Inc (DHI) has a Forward Free Cash Flow (FCF) yield of approximately 5.97%. Compared to its 3-year average FCF yield of 5.50%, the current FCF yield is approximately 8.49% lower. Relative to its 5-year average FCF yield of 4.10% , the current FCF yield is about 45.75% lower.

1.95

P/B

Median3y

1.84

Median5y

1.97

6.03

FCF Yield

Median3y

5.50

Median5y

4.10

Competitors Valuation Multiple

The average P/S ratio for DHI's competitors is 1.40, providing a benchmark for relative valuation. DR Horton Inc Corp (DHI) exhibits a P/S ratio of 1.34, which is -3.90% above the industry average. Given its robust revenue growth of -7.43%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Taylor Morrison Home Corp

0.83

1.96%

6.53B

Performance Decomposition

Market capitalization of DHI decreased by 16.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 11.49 to 12.60.

The secondary factor is the Revenue Growth, contributed -7.43%to the performance.

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

-7.43%

9.97B → 9.23B

Revenue Growth

-18.37%

13.72 → 11.20

Margin Expansion

9.64%

11.49 → 12.60

P/E Change

-16.16%