D.R. Horton, Inc. (DHI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-22.1%

$118.98

vs $152.66 price

Levered DCF

$154.93

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

5.71

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	13.48×	14.58×	13.21×	7.72×	4.05×	7.26×	11.65×	12.15×
P/B	1.68×	2.16×	2.48×	1.61×	1.22×	2.04×	2.33×	1.96×
P/S	1.18×	1.53×	1.71×	1.03×	0.71×	1.09×	1.36×	1.12×
EV / EBITDA	10.67×	11.43×	10.09×	5.91×	3.54×	6×	9.45×	9.81×
Gross margin	22.3%	23.7%	25.9%	26.4%	31.4%	28.4%	24.3%	22.0%
Operating margin	10.9%	12.9%	16.6%	17.6%	23.0%	19.4%	14.5%	11.7%
Net margin	8.7%	10.5%	12.9%	13.4%	17.5%	15.0%	11.7%	9.2%
Current ratio	6.01×	17.39×	17.06×	14.96×	13.13×	12.87×	14.71×	17.23×
Debt / equity	0.26×	0.25×	0.24×	0.23×	0.32×	0.37×	0.36×	0.34×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	1.3%	0.9%	0.6%	0.9%	1.3%	1.0%	0.9%	1.1%
Payout ratio	17.8%	13.8%	8.3%	7.2%	5.4%	6.9%	10.8%	13.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	12.5%	14.8%	18.8%	20.9%	30.2%	28.1%	20.0%	16.2%
Return on invested capital	9.1%	10.1%	13.7%	15.5%	21.2%	19.0%	13.3%	10.6%
Return on assets	8.3%	10.1%	13.2%	14.6%	19.3%	17.4%	12.6%	10.4%
Free cash flow yield	8.6%	6.3%	3.2%	11.3%	1.7%	0.9%	4.1%	3.4%
Earnings yield	7.4%	6.9%	7.6%	13.0%	24.7%	13.8%	8.6%	8.2%
Enterprise value	$42.9B	$55.3B	$64.3B	$37.9B	$27.3B	$32.6B	$28.9B	$21.5B
Net debt / EBITDA	0.99×	0.63×	0.23×	0.2×	0.46×	0.41×	0.42×	0.87×
Cash conversion cycle (days)	340	341	320	300	327	285	274	288