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 14.09 is considered Overvalued compared with the five-year average of 8.94. The fair price of DR Horton Inc (DHI) is between 91.56 to 141.57 according to relative valuation methord. Compared to the current price of 160.73 USD , DR Horton Inc is Overvalued By 13.53%.
Relative Value
Fair Zone
91.56-141.57
Current Price：160.73
13.53%
Overvalued
14.09
PE
1Y
3Y
5Y
Trailing
Forward
10.87
EV/EBITDA
DR Horton Inc. (DHI) has a current EV/EBITDA of 10.87. The 5-year average EV/EBITDA is 7.13. The thresholds are as follows: Strongly Undervalued below 3.07, Undervalued between 3.07 and 5.10, Fairly Valued between 9.16 and 5.10, Overvalued between 9.16 and 11.19, and Strongly Overvalued above 11.19. The current Forward EV/EBITDA of 10.87 falls within the Overvalued range.
13.43
EV/EBIT
DR Horton Inc. (DHI) has a current EV/EBIT of 13.43. The 5-year average EV/EBIT is 8.43. The thresholds are as follows: Strongly Undervalued below 3.15, Undervalued between 3.15 and 5.79, Fairly Valued between 11.07 and 5.79, Overvalued between 11.07 and 13.71, and Strongly Overvalued above 13.71. The current Forward EV/EBIT of 13.43 falls within the Overvalued range.
1.40
PS
DR Horton Inc. (DHI) has a current PS of 1.40. The 5-year average PS is 1.12. 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 1.40 falls within the Overvalued range.
15.58
P/OCF
DR Horton Inc. (DHI) has a current P/OCF of 15.58. The 5-year average P/OCF is 14.11. The thresholds are as follows: Strongly Undervalued below 4.96, Undervalued between 4.96 and 9.53, Fairly Valued between 18.68 and 9.53, Overvalued between 18.68 and 23.26, and Strongly Overvalued above 23.26. The current Forward P/OCF of 15.58 falls within the Historic Trend Line -Fairly Valued range.
18.91
P/FCF
DR Horton Inc. (DHI) has a current P/FCF of 18.91. The 5-year average P/FCF is 12.80. The thresholds are as follows: Strongly Undervalued below 3.93, Undervalued between 3.93 and 8.36, Fairly Valued between 17.23 and 8.36, Overvalued between 17.23 and 21.66, and Strongly Overvalued above 21.66. The current Forward P/FCF of 18.91 falls within the Overvalued range.
DR Horton Inc (DHI) has a current Price-to-Book (P/B) ratio of 1.96. Compared to its 3-year average P/B ratio of 1.90 , the current P/B ratio is approximately 2.91% higher. Relative to its 5-year average P/B ratio of 1.94, the current P/B ratio is about 0.72% higher. DR Horton Inc (DHI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.11%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.23% , the current FCF yield is about -100.00% lower.
1.96
P/B
Median3y
1.90
Median5y
1.94
6.81
FCF Yield
Median3y
6.11
Median5y
4.23
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
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DHI increased by 14.95% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.56 to 13.89.
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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