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
D.R. Horton Inc (DHI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 12.80 is considered Overvalued compared with the five-year average of 9.05. The fair price of D.R. Horton Inc (DHI) is between 90.43 to 141.05 according to relative valuation methord. Compared to the current price of 145.90 USD , D.R. Horton Inc is Overvalued By 3.44%.
Relative Value
Fair Zone
90.43-141.05
Current Price：145.90
3.44%
Overvalued
12.80
PE
1Y
3Y
5Y
9.69
EV/EBITDA
D.R. Horton Inc. (DHI) has a current EV/EBITDA of 9.69. The 5-year average EV/EBITDA is 7.21. The thresholds are as follows: Strongly Undervalued below 3.12, Undervalued between 3.12 and 5.17, Fairly Valued between 9.26 and 5.17, Overvalued between 9.26 and 11.30, and Strongly Overvalued above 11.30. The current Forward EV/EBITDA of 9.69 falls within the Overvalued range.
12.22
EV/EBIT
D.R. Horton Inc. (DHI) has a current EV/EBIT of 12.22. The 5-year average EV/EBIT is 8.55. The thresholds are as follows: Strongly Undervalued below 3.20, Undervalued between 3.20 and 5.87, Fairly Valued between 11.22 and 5.87, Overvalued between 11.22 and 13.90, and Strongly Overvalued above 13.90. The current Forward EV/EBIT of 12.22 falls within the Overvalued range.
1.24
PS
D.R. Horton Inc. (DHI) has a current PS of 1.24. The 5-year average PS is 1.13. The thresholds are as follows: Strongly Undervalued below 0.68, Undervalued between 0.68 and 0.90, Fairly Valued between 1.36 and 0.90, Overvalued between 1.36 and 1.59, and Strongly Overvalued above 1.59. The current Forward PS of 1.24 falls within the Historic Trend Line -Fairly Valued range.
13.76
P/OCF
D.R. Horton Inc. (DHI) has a current P/OCF of 13.76. The 5-year average P/OCF is 13.96. The thresholds are as follows: Strongly Undervalued below 5.09, Undervalued between 5.09 and 9.53, Fairly Valued between 18.39 and 9.53, Overvalued between 18.39 and 22.82, and Strongly Overvalued above 22.82. The current Forward P/OCF of 13.76 falls within the Historic Trend Line -Fairly Valued range.
16.70
P/FCF
D.R. Horton Inc. (DHI) has a current P/FCF of 16.70. The 5-year average P/FCF is 12.69. The thresholds are as follows: Strongly Undervalued below 4.21, Undervalued between 4.21 and 8.45, Fairly Valued between 16.94 and 8.45, Overvalued between 16.94 and 21.18, and Strongly Overvalued above 21.18. The current Forward P/FCF of 16.70 falls within the Historic Trend Line -Fairly Valued range.
D.R. Horton Inc (DHI) has a current Price-to-Book (P/B) ratio of 1.77. Compared to its 3-year average P/B ratio of 1.91 , the current P/B ratio is approximately -7.13% higher. Relative to its 5-year average P/B ratio of 1.94, the current P/B ratio is about -8.43% higher. D.R. Horton Inc (DHI) has a Forward Free Cash Flow (FCF) yield of approximately 7.72%. Compared to its 3-year average FCF yield of 6.28%, the current FCF yield is approximately 22.87% lower. Relative to its 5-year average FCF yield of 4.29% , the current FCF yield is about 79.94% lower.
1.77
P/B
Median3y
1.91
Median5y
1.94
7.72
FCF Yield
Median3y
6.28
Median5y
4.29
Competitors Valuation Multiple
The average P/S ratio for DHI's competitors is 1.27, providing a benchmark for relative valuation. D.R. Horton Inc Corp (DHI) exhibits a P/S ratio of 1.24, which is -2.6% above the industry average. Given its robust revenue growth of -3.25%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DHI decreased by 1.83% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.80 to 12.59.
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.
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Frequently Asked Questions
Is D.R. Horton Inc (DHI) currently overvalued or undervalued?
D.R. Horton Inc (DHI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 12.80 is considered Overvalued compared with the five-year average of 9.05. The fair price of D.R. Horton Inc (DHI) is between 90.43 to 141.05 according to relative valuation methord. Compared to the current price of 145.90 USD , D.R. Horton Inc is Overvalued By 3.44% .
What is D.R. 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 D.R. Horton Inc (DHI) is between 90.43 to 141.05 according to relative valuation methord.
How does DHI's valuation metrics compare to the industry average?
The average P/S ratio for DHI's competitors is 1.27, providing a benchmark for relative valuation. D.R. Horton Inc Corp (DHI) exhibits a P/S ratio of 1.24, which is -2.60% above the industry average. Given its robust revenue growth of -3.25%, this premium appears unsustainable.
What is the current P/B ratio for D.R. Horton Inc (DHI) as of Jan 09 2026?
As of Jan 09 2026, D.R. Horton Inc (DHI) has a P/B ratio of 1.77. This indicates that the market values DHI at 1.77 times its book value.
What is the current FCF Yield for D.R. Horton Inc (DHI) as of Jan 09 2026?
As of Jan 09 2026, D.R. Horton Inc (DHI) has a FCF Yield of 7.72%. This means that for every dollar of D.R. Horton Inc’s market capitalization, the company generates 7.72 cents in free cash flow.
What is the current Forward P/E ratio for D.R. Horton Inc (DHI) as of Jan 09 2026?
As of Jan 09 2026, D.R. Horton Inc (DHI) has a Forward P/E ratio of 12.80. This means the market is willing to pay $12.80 for every dollar of D.R. Horton Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for D.R. Horton Inc (DHI) as of Jan 09 2026?
As of Jan 09 2026, D.R. Horton Inc (DHI) has a Forward P/S ratio of 1.24. This means the market is valuing DHI at $1.24 for every dollar of expected revenue over the next 12 months.