Hovnanian Enterprises, Inc. (HOV) 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

+165.4%

$279.78

vs $105.41 price

Levered DCF

$277.11

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.77

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.12×	5.12×	2.42×	1.33×	1×	4.25×	-3.55×	48.03×
P/B	0.93×	1.43×	0.74×	0.68×	3.14×	-0.45×	-0.31×	-0.48×
P/S	0.26×	0.38×	0.16×	0.09×	0.2×	0.08×	0.07×	0.11×
EV / EBITDA	10.58×	5.48×	4.02×	3.34×	6.21×	9.25×	23.15×	15.74×
Gross margin	14.1%	20.0%	21.0%	22.0%	19.4%	15.9%	14.8%	16.3%
Operating margin	2.4%	8.6%	10.0%	11.9%	9.5%	0.0%	4.4%	5.8%
Net margin	2.1%	8.1%	7.5%	7.7%	21.8%	2.2%	-2.1%	0.2%
Current ratio	3.92×	0.93×	3.67×	3.57×	3.06×	6.26×	4.28×	4×
Debt / equity	1.12×	1.27×	1.96×	3.42×	7.96×	-3.63×	-3.47×	-3.46×
Interest coverage	2×	8.44×	5.12×	7.34×	3.4×	0×	0.98×	1.12×
Dividend yield	1.4%	0.9%	2.5%	4.4%	0.1%	0.0%	0.0%	0.0%
Payout ratio	16.7%	4.4%	5.2%	5.1%	0.1%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.7%	30.2%	35.4%	58.9%	347.5%	-11.7%	8.6%	-1.0%
Return on invested capital	2.5%	76.5%	11.2%	12.1%	14.7%	0.0%	5.8%	4.9%
Return on assets	2.4%	9.3%	8.3%	8.8%	26.2%	2.8%	-2.2%	0.3%
Free cash flow yield	21.4%	0.5%	96.2%	29.6%	37.2%	147.3%	-169.1%	-33.2%
Earnings yield	8.2%	21.2%	47.6%	86.9%	110.7%	25.9%	-28.1%	2.1%
Enterprise value	$1.4B	$1.9B	$1.1B	$1.2B	$1.7B	$1.5B	$1.7B	$1.6B
Net debt / EBITDA	4.86×	2.27×	2.5×	2.64×	4.2×	8.05×	21.14×	13.61×
Cash conversion cycle (days)	174	188	160	178	140	199	253	215