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Daiwa House Industry Co (DWAHY) Fair Value & Analysis

Real Estate · US · Market cap $16.8B

DH Daiwa House Industry Co logo Daiwa House Industry Co DWAHY · US
Price$28.92
Fair Value$72.38
Upside+150.3%
Quality49/100
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Expensive Growth
Thin margins · 6.3% net margin
Moderate debt · negative free cash flow
3.80% dividend yield
Ranks above peers (9/10)
Moderate moat 46/100
Evidence: High Range $52.07 – $92.68 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated today

Fair value updated Aug 13, 2026, revised from $68.78 to $72.38 (+5.2%) since Jul 26, 2026. Share price +1.6% over the past month.

Below-average quality, screening 150% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($52.07). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

$35.80 $16.57 Fair Value $72.38 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $16.57 – $35.80 · fair‑value band $52.07 – $92.68 · the $28.92 price screens below the $72.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Daiwa House Industry Co (DWAHY) currently trades at $28.92, while our model-based Fair Value estimate is $72.38, implying the stock looks roughly 150.3% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Daiwa House Industry Co generated revenue of $5.6T at a net margin of 6.3%. Revenue grew 4.2% year over year. It earns a return on equity of 12.5%. Net debt stands at $2.8T. Fundamentals as of Aug 13, 2026

Our scenario range runs from $52.07 (bear case) to $92.68 (bull case); at $28.92, the current price sits below 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 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 15% fair-value upside, at 150%, DWAHY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income $4,439 $5,400 $11,707 61
P/S Multiple $7,652 $10,203 $12,753 58
P/B Multiple $7,046 $9,395 $11,743 55
All 7 models by family
Multiples
P/S Multiple $7,652 $10,203 $12,753 58
P/B Multiple $7,046 $9,395 $11,743 55
EV/EBIT $14,957 $20,741 $26,525 53
EV/EBITDA $14,077 $19,567 $25,058 54
EV/Revenue $7,175 $11,276 $15,378 43
Asset-Based
NCAV (Graham) $2,349 $3,147 $4,697 50
Economic Profit
Residual Income $4,439 $5,400 $11,707 61

Widest divergence: Multiples ($11,276) versus Asset-Based ($3,147). Highest evidence: Residual Income (61).

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Key figures & financial health

Revenue (TTM) $5.6T
Revenue growth (YoY) +4.2%
Net margin 6.3%
Return on equity 12.5%
Free cash flow −$323B FY2026
P/E ratio 8.2
More key figures
Operating margin 16.3%
EPS (TTM) $3.54
Dividend yield 3.8%
EPS growth (YoY) +42.6%
Net debt $2.8T FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 47 · Market factors (momentum, volatility) 45

Profitability 40
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

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.

About the company

Daiwa House Industry Co., Ltd., together with its subsidiaries, engages in the construction work business in Japan, the United States, and internationally.

Full company description

Daiwa House Industry Co., Ltd., together with its subsidiaries, engages in the construction work business in Japan, the United States, and internationally. It operates through Single-Family Houses Business; Rental Housing Business; Condominiums Business; Commercial Facilities Business; Logistics, Business and Corporate Facilities Business; Environmental and Energy Business; and Other Businesses segments. The Single-Family Houses segment engages in the construction of single-family houses; and sale of house and land packages. Its Rental Housing segment is involved in rental housing development, construction, management, operation, and agency services. The Condominiums segment develops, sells, and manages condominiums. Its Logistics, Business and Corporate Facilities Business segment engages in the development, construction, management, and operation of commercial facilities. The Logistics, Business and Corporate Facilities Business segment engages in the development, construction, management, and operation of logistics, manufacturing facilities, medical, nursing care, and other facilities. Its Environmental Energy segment develops and constructs renewable energy power plants; and engages in renewable energy generation and electricity retail business. The company also engages in housing renovation and interiors; environmental energy and greening; asset management; agriculture; parking and carsharing; golf course; fitness club and aesthetic salon; home and shopping center; fee-based homes for the elderly; travel agency; insurance; credit card and financial services; information technology; cultivation; community development; resort hotel; and logistics, sports club management, and credit card businesses. Daiwa House Industry Co., Ltd. was incorporated in 1947 and is headquartered in Kita, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Daiwa House Industry Co reported revenue of $5.9T in FY2026 versus $4.4T in FY2022, a compound +7.4%/yr. Reported net income was $372B in FY2026, compounding +13.3%/yr from FY2022.

Growth Quality 48/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
$5.9T
Latest YoY
+8.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.5%
Avg. growth/yr (29Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.7%
Revenue +7.4%/yr
FY22 $4.4T
FY23 $4.9T
FY24 $5.2T
FY25 $5.4T
FY26 $5.9T
Net income +13.3%/yr
FY22 $225B
FY23 $308B
FY24 $299B
FY25 $325B
FY26 $372B
Character of growth · EPS growth decomposed (2015-2026) +10.5 % p.a.
Revenue per share +6.8 pp

of which total revenue +6.3 pp · buybacks/dilution +0.5 pp

EBIT margin +2.8 pp
Tax rate +0.2 pp
Residual (interest, one-offs) +0.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Daiwa House Industry Co Fair Value". https://www.fairvalue-calculator.com/stock/DWAHY

Peer Group

Real Estate - Development · 592 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.

Quality Score 50 · Above median
Fair Value upside +150% · Top 25%
Return on equity (TTM) 13% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) 16% · Above median
Revenue growth 4% · Above median
Dividend yield (TTM) 3.8% · Above median
Debt / equity 0.66× · Higher than median

Valuation Multiples vs Real Estate - Development median · lower = cheaper

P/E (TTM) 8.2× · Cheaper than median

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.

VALUE 100 · sector 47
FUTURE 21 · sector 0
PAST 50 · sector 10
HEALTH 67 · sector 85
DIVIDEND 76 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Real Estate - Development stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
DLF Limited DLF ₹661.75 ₹146.13 -78%
Lodha Developers Limited LODHA ₹1,209 ₹583.43 -52%
PT Pantai Indah Kapuk Dua Tbk, PANI 6,150 IDR 1,330 IDR -78%
PT Jaya Real Property, Tbk., JRPT 1,080 IDR 1,674 IDR +55%
PT Bumi Serpong Damai Tbk, BSDE 595.00 IDR 1,488 IDR +150%
PT Sentul City Tbk, BKSL 73.00 IDR 84.16 IDR +15%
PT Ciputra Development Tbk, CTRA 610.00 IDR 1,525 IDR +150%
Khang Dien House Trading and Investment Joint Stock Company KDH 18,150 VND 20,338 VND +12%
PT Duta Pertiwi Tbk DUTI 4,300 IDR 6,239 IDR +45%
PT Puradelta Lestari Tbk DMAS 147.00 IDR 164.33 IDR +12%

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Frequently asked questions

Is Daiwa House Industry Co (DWAHY) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $72.38 versus a price of $28.92, about +150% (undervalued).
What is the fair value of DWAHY?
Our model-based fair value for Daiwa House Industry Co is $72.38 (as of Aug 13, 2026), built from audited fundamentals. The current price is $28.92.
What is the quality score of DWAHY?
Daiwa House Industry Co has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Daiwa House Industry Co (DWAHY)?
Daiwa House Industry Co reported trailing-twelve-month revenue of about $5.6T (latest available figure, as of Aug 13, 2026).
What is the net profit margin of DWAHY?
The net profit margin of Daiwa House Industry Co is about 6.3%, meaning it keeps roughly 6.3% of revenue as net income. Based on the latest reported figures.
Does Daiwa House Industry Co pay a dividend?
Daiwa House Industry Co currently shows a dividend yield of about 3.80% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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