DR Horton Inc (DHI) Fair Value & Analysis
Consumer Cyclical · US · Market cap $42.4B · ISIN US23331A1097
What is DR Horton Inc really worth?
DR Horton Inc
DHI · US
A solid business, trading 32% below our fair value of $213.23.
Strengths
Risks
For context
Fair value as of: Aug 29, 2026
From 26 valuation models · updated 7 days ago
Share price −4.0% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($127.83 to $277.42) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.
How to read this chart
60‑month range $58.13 – $193.15 · fair‑value band $127.83 – $277.42 · the $144.41 price screens below the $213.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.
Analysis
DR Horton Inc (DHI) currently trades at $144.41, while our model-based Fair Value estimate is $213.23, implying the stock looks roughly 32.3% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $273.24 per share, and 20 of the 26 models we run sit above the $144.41 price. Bear case: the Dividend Discount group reads lowest at $28.09, and 6 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, DR Horton Inc generated revenue of $33.3B at a net margin of 9.5%. Revenue declined 2.3% year over year. It earns a return on equity of 13.1%. Net debt stands at $3.0B. Fundamentals as of Aug 29, 2026
Our scenario range runs from $127.83 (bear case) to $277.42 (bull case); at $144.41, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 22% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 37% fair-value upside, at 48%, DHI screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $8.30 per share, which is 3.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Growth Earnings ($273.24) versus Dividend Discount ($28.09). Highest evidence: FCF DCF (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 65 · Market factors (momentum, volatility) 34
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 126 markets across 36 states under the names of D.R. Horton.
Full company description
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 126 markets across 36 states under the names of D.R. Horton. The company also constructs and sells single-family detached homes; and attached homes, such as townhomes and duplexes. In addition, it provides mortgage financing and title agency services; and engages in the residential lot development business. Further, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; conducts insurance-related operations; and owns water rights and other water-related assets, as well as non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
DR Horton Inc reported revenue of $34.3B in FY2025 versus $27.8B in FY2021, a compound +5.4%/yr. Reported net income was $3.6B in FY2025, compounding −3.7%/yr from FY2021.
of which total revenue +14.7 % · buybacks/dilution +1.4 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- D.R. Horton (DHI) Stock Looks Discounted To Fair Value While Legal Risks Linger
- D.R. Horton's Minnesota Division and Trade Partners Donate School Supplies to Rochester Schools
- Did Softer Guidance, Berkshire’s Stake and Legal Pressures Just Shift D.R. Horton’s (DHI) Investment Narrative?
Peer Group
Residential Construction · 65 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Residential Construction median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| PulteGroup, Inc PHM | $126.75 | $190.17 | +50% |
| Lennar Corporation LEN | $85.11 | $116.80 | +37% |
| NVR, Inc NVR | $6,396 | $7,821 | +22% |
| Toll Brothers, Inc TOL | $146.22 | $221.32 | +51% |
| Taylor Morrison Home Corporation TMHC | $72.45 | $136.88 | +89% |
| Installed Building Products, Inc IBP | $237.70 | $209.51 | −12% |
| Meritage Homes Corporation MTH | $71.06 | $102.94 | +45% |
| Champion Homes, Inc SKY | $93.88 | $75.12 | −20% |
| Cavco Industries, Inc CVCO | $598.38 | $421.10 | −30% |
| M/I Homes, Inc MHO | $148.81 | $177.41 | +19% |
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