---
title: D. R. Horton (DHI) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/dhi
ticker: DHI
as_of: 2026-10-17
sector: Consumer Cyclical
industry: Residential Construction
---
# D. R. Horton (DHI)

D. R. Horton (DHI) closed at $139.39 on Oct 16, 2026, undervalued by 31% vs its model value of $203.08 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $139.39 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $203.08 |
| Price vs model | undervalued by 31% vs model |
| Range of that model | $145.72 – $345.15 |
| Market value | $39.0B |
| P/E (fiscal 2025) | 12.0 |
| Net margin (fiscal 2025) | 10.5% |
| Free cash flow (fiscal 2025) | $3.3B |
| Dividend yield (trailing twelve months) | 1.29% |
| Beta | 1.35 |
| Cost of capital (WACC) | 9.52% |
| Business classification | Cyclical (Revenue declining (~-2% recent), Moderate margins (10% net margin), Pays dividends, Moderately volatile earnings, Strong FCF yield (8.4%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Lowest P/E | #35 | 12.0× | https://sweetvaluelab.com/lists/lowest-pe |
| Near 52-week lows | #32 | +5.2% | https://sweetvaluelab.com/lists/near-52-week-lows |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.29% |
| Dividends per share, last 12 months | $1.80 |
| Dividends / free cash flow (fiscal 2025) | 15.1% |
| Raised | 11 years in a row |
| Growth over 5 years | 17.6% a year |
| Latest payment | $0.45, ex-date Aug 6, 2026, paid Aug 13, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 9, 2021 | $0.80 |
| To Aug 3, 2022 | $0.90 |
| To Aug 4, 2023 | $1.00 |
| To Aug 1, 2024 | $1.20 |
| To Aug 7, 2025 | $1.60 |
| Trailing twelve months (to Aug 6, 2026) | $1.80 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $203.08 | $145.72 | $345.15 |
| DCF · Perpetuity growth · 10y | cross check | $215.04 | $158.02 | $353.34 |
| DCF · EBITDA exit · 5y | cross check | $152.24 | $88.61 | $227.57 |
| DCF · EBITDA exit · 10y | cross check | $175.98 | $117.94 | $254.28 |
| P/E · peers | cross check | $136.97 | $132.65 | $142.34 |
| P/E · own history | cross check | $102.46 | $76.03 | $131.78 |
| PEG | sanity check | $83.59 | $83.59 | $83.59 |
| EV/EBITDA · peers | cross check | $105.63 | $101.21 | $127.67 |
| EV/Revenue · peers | cross check | $64.77 | $59.85 | $70.35 |
| Earnings power value | cross check | $107.95 | $91.94 | $129.94 |
| Dividend discount | cross check | $35.45 | $25.68 | $48.63 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 8, 2026 | Murray Michael J | EVP and COO | Bona fide gift | 5,000 | $0 |
| Aug 26, 2026 | Smith Barbara | Director | Option/RSU exercise | 264 | — |
| Aug 26, 2026 | Smith Barbara | Director | Option/RSU exercise | 264 | $0 |
| Aug 26, 2026 | CROWLEY ELAINE D | Director | Option/RSU exercise | 264 | — |
| Aug 26, 2026 | CROWLEY ELAINE D | Director | Option/RSU exercise | 264 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 15, 2026 | 8-K | 8.01 Other Events | https://www.sec.gov/Archives/edgar/data/882184/000088218426000108/dhi-20260915.htm |
| Jul 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/882184/000088218426000096/dhi-20260630.htm |
| Jul 21, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/882184/000088218426000092/dhi-20260721.htm |
| May 12, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/882184/000088218426000087/dhi-20260506.htm |
| Apr 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/882184/000088218426000081/dhi-20260331.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Greenhaven | 2026-06-30 | 3,505,800 | $571.0M |
| Glenn Greenberg | 2026-06-30 | 684,478 | $111.5M |
| Druckenmiller | 2026-06-30 | 299,000 | $48.7M |
| Third Avenue | 2026-06-30 | 69,205 | $11.3M |

6 tracked managers in all.

## About

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…

---

Source: https://sweetvaluelab.com/stocks/dhi (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.