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D.R. Horton, Inc. — Intrinsic Value & Fair Price

DHI
NYSEConsumer CyclicalResidential ConstructionCIK 0000882184drhorton.comAbout DHI
Last close · Oct 16, 2026139.39−0.16 (−0.11%)
Market cap$39.0B
Model value · DCF · Perpetuity growth · 5y
203.08
D. R. Horton closed at $139.39 — undervalued by 31% vs model.
145.72the model's range345.15

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
35.45 – 215.04
Wall St. target
158.50 12% below
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.29%
Past 2 years
low 0.61%high 1.35%
Dividends per share, a year at a time
$0.80Aug ’21$0.90Aug ’22$1.00Aug ’23$1.20Aug ’24$1.60Aug ’25$1.80TTM
Dividends / free cash flow, FY2025
15.1%
Raised
11 years in a row
Growth, 5 yrs
17.6% a year
Last change
+12.5% · Nov 2025
Every payment, with ex-dates · latest $0.45, paid Aug 13, 2026

Research on DHI

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How it is valued

Valued asCyclical
Revenue declining (~-2% recent)Moderate margins (10% net margin)Pays dividendsModerately volatile earningsStrong FCF yield (8.4%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
12.0×
EV / EBITDA
8.7×
FCF yield
7.6%
Dividend yield, TTM
1.29%
Beta
1.35
Cost of capital (WACC)
9.52%
Full financials

Analyst actions

third-party, quoted
10-16Wells Fargo · target140.00
10-12Goldman Sachs · target182.00
10-06Barclays · target130.00
07-07Zelman & Assoc · “Outperform” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs LEN

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About D. R. Horton

Established in Arlington, Texas, in 1978, D.R. Horton, Inc. operates as a prominent residential construction enterprise. The company's core business involves acquiring and preparing land, then constructing and marketing homes across a substantial portion of the United States. Its operations span 31 states and 98 distinct markets, covering the East, North, Southeast, South Central, Southwest, and Northwest regions. Under several well-known brand names, including D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes, the firm develops diverse housing types. This includes both individual detached houses and attached residences such as townhomes, duplexes, and triplexes. Beyond its primary homebuilding activities, D.R. Horton offers a range of complementary services. These encompass providing mortgage financing to its clientele, as well as furnishing title insurance, examination, and closing services. The company is also engaged in the development of residential lots. Additionally, D.R. Horton's portfolio extends to the creation, ownership, leasing, and sale of multi-family and single-family rental properties. It also holds non-residential real estate, such as ranch land and related facilities, and manages assets within the energy sector. The company primarily caters to individuals purchasing new homes.

CEO
Paul J. Romanowski
Headquarters
Arlington, TX
Employees
14,341
IPO
1992-06-05
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.