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Frontdoor Inc (FTDR) Fair Value & Analysis

Consumer Cyclical · US · Market cap $5.3B · ISIN US35905A1097

What is Frontdoor Inc really worth?

FI Frontdoor Inc logo Frontdoor Inc FTDR · US
Price$82.71
Fair Value$73.81
Upside−10.8%
Quality70/100

A solid business, but trading 12% above our fair value of $73.81.

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Strengths

Healthy Growth (revenue 5y +7.3 %/yr)
Solidly profitable · 12.2% net margin
Wide moat 70/100

Risks

!High debt · generates free cash flow
!Mixed vs. peers (7/15)
!Weak on valuation: 19 out of 100
Evidence: High Range $45.56 – $96.73

Fair value as of: Aug 24, 2026

From 26 valuation models · updated 12 days ago

Share price +7.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A fairly wide model range ($45.56 to $96.73) leaves room in how you read the outcome.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

$90.83 $19.55 Fair Value $73.81 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range $19.55 – $90.83 · fair‑value band $45.56 – $96.73 · the $82.71 price screens above the $73.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 24, 2026.

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Analysis

Frontdoor Inc (FTDR) currently trades at $82.71, while our model-based Fair Value estimate is $73.81, implying the stock looks roughly 12.1% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of $80.21 per share, and 7 of the 26 models we run sit above the $82.71 price. Bear case: the Economic Profit group reads lowest at $21.23, and 19 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Frontdoor Inc generated revenue of $2.1B at a net margin of 12.2%. Revenue grew 5.9% year over year. It earns a return on equity of 121.0%. Net debt stands at $646M. Fundamentals as of Aug 24, 2026

Our scenario range runs from $45.56 (bear case) to $96.73 (bull case); at $82.71, 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 near its 52-week high and 71% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −7% fair-value upside, at −11%, FTDR screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.38 per share, which is 3.2 % 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.

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
FCF DCF $53.57 $89.75 $144.69 79
Growth DCF $54.04 $85.13 $129.00 78
Owner Earnings $42.29 $71.87 $116.78 75
All 26 models by family
DCF Models
FCF DCF $53.57 $89.75 $144.69 79
Owner Earnings $42.29 $71.87 $116.78 75
5Y Revenue Exit $29.18 $46.46 $67.97 72
5Y EBITDA Exit $50.45 $87.30 $130.82 74
5Y P/E Exit $48.34 $83.24 $120.49 70
10Y Revenue Exit $36.82 $54.88 $78.60 67
10Y EBITDA Exit $50.97 $83.00 $126.65 67
10Y P/E Exit $49.64 $80.21 $118.76 63
Earnings-Based
Graham-Dodd $24.69 $86.90 $116.91 64
Lynch FV $20.31 $29.01 $37.71 61
PEG = 1.0 $20.31 $29.01 $37.71 57
EPV $33.71 $40.33 $46.04 74
Dividend Discount
Gordon GGM $17.13 $34.14 $51.69 67
DDM Multi-Stage $17.13 $29.49 $36.03 67
Multiples
P/E Multiple $59.91 $79.87 $99.84 63
P/S Multiple $26.82 $35.76 $44.70 58
P/B Multiple $10.34 $13.78 $17.23 55
EV/EBIT $70.00 $96.08 $122.15 66
EV/EBITDA $55.33 $76.51 $97.70 67
EV/Revenue $16.80 $27.53 $38.26 52
Asset-Based
NCAV (Graham) $1.72 $2.31 $3.45 54
Growth DCF
Growth DCF $54.04 $85.13 $129.00 78
Rev-Margin DCF $29.18 $47.06 $68.56 72
Economic Profit
Residual Income $14.83 $21.23 $251.71 64
ROIC Compounder $36.48 $46.91 $58.24 72
Growth Earnings
Growth-Adj P/E $51.48 $73.55 $95.61 67

Widest divergence: DCF Models ($80.21) versus Asset-Based ($2.31). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 23.6
P/S ratio 2.88 P/E × margin
EPS (TTM) $3.50 price ÷ EPS = P/E 23.6
Dividend yield 3.1% payout 72.9%
Net margin 12.2% FY2025
Return on equity 121% TTM
More key figures
Profitability
Return on assets (EBIT) 19.4% avg 5y
Operating margin 14.6% TTM
Growth
Revenue (TTM) $2.1B TTM
Revenue growth (YoY) +5.9% 3y avg +8.0%
EPS growth (YoY) +16.3%
Balance sheet & cash flow
Free cash flow $389M FY2025
Net debt $646M FY2025 · ≈ 1.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 62

Profitability 78
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 28
Calm price path (market factor)
Momentum 71
Price trend over the last 3–12 months (market factor)
52W Momentum 85
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.

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

Frontdoor, Inc. provides home warranties and new home builder warranties in the United States. The company offers customizable home warranties that help customers to protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances.

Full company description

Frontdoor, Inc. provides home warranties and new home builder warranties in the United States. The company offers customizable home warranties that help customers to protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. Its home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as pools, spas, and pumps; and heating, ventilation, and air conditioning systems. It also offers non-warranty home services through website and application; a one-stop app experience for home repair and maintenance using video chat, augmented reality, and computer vision and machining learning. The company operates under the American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW brand names. Frontdoor, Inc. was founded in 1971 and is headquartered in Memphis, Tennessee.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Frontdoor Inc reported revenue of $2.1B in FY2025 versus $1.6B in FY2021, a compound +6.9%/yr. Reported net income was $255M in FY2025, compounding +18.8%/yr from FY2021.

Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$2.1B
Latest YoY
+13.6%
Avg. revenue 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.
+8.0%
Avg. revenue 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.
+7.3%
Avg. revenue growth/yr (10Y) 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.
+8.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+21.1% (18.0 + 3.1)
Revenue +6.9%/yr
FY21 $1.6B
FY22 $1.7B
FY23 $1.8B
FY24 $1.8B
FY25 $2.1B
Net income +18.8%/yr
FY21 $128M
FY22 $71.0M
FY23 $171M
FY24 $235M
FY25 $255M
Character of growth · EPS growth decomposed (2015-2025) +8.3 % p.a.
Revenue per share +9.4 %

of which total revenue +8.3 % · buybacks/dilution +1.0 %

EBIT margin −1.0 %
Tax rate +2.1 %
Residual (interest, one-offs) −2.1 %

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).

FTDR screens 12% overvalued. Compare with Rollins, Inc →

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Cite: Fair Value Calculator (2026). "Frontdoor Inc Fair Value". https://www.fairvalue-calculator.com/stock/FTDR

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Personal Services · 39 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 70 · Top 25%
Fair Value upside −11% · Above median
Return on equity (TTM) 121% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 15% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 3.1% · Below median
Debt / equity 4.73× · Higher than 75% of peers

Valuation Multiples vs Personal Services median · lower = cheaper

P/E (TTM) 23.6× · Pricier than 75% of peers
P/B 22.01× · Pricier than 75% of peers
P/S (TTM) 2.52× · Pricier than 75% of peers
P/FCF 13.7× · Pricier than median
EV/EBITDA 11.9× · Pricier than median
PEG 2.38× · Pricier than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE19 · sector 17
FUTURE30 · sector 21
PAST100 · sector 34
HEALTH0 · sector 91
DIVIDEND62 · sector 64

Insider activity: 40/100

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

Similar stocks

10 more Personal Services stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
Rollins, Inc ROL $35.94 $21.11 −41%
Service Corporation SCI $81.43 $38.27 −53%
H&R Block, Inc HRB $52.67 $78.30 +49%
Bright Horizons Family Solutions Inc BFAM $70.29 $62.41 −11%
Fu Shou Yuan International Group 1448 HK$2.64 HK$4.22 +60%
CEWE Stiftung & Co CWC €96.00 €157.28 +64%
Lungyen Life Service Corporation 5530 51.20 TWD 31.33 TWD −39%
Carriage Services, Inc CSV $34.26 $27.81 −19%
Musti Group MUSTI €15.10 €14.08 −7%
Propel Funeral Partners Limited PFP A$3.28 A$3.25 −1%

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Frequently asked questions

Is Frontdoor Inc (FTDR) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of $73.81 versus a price of $82.71, about −11% upside (overvalued).
What is the fair value of FTDR?
Our model-based fair value for Frontdoor Inc is $73.81 (as of Aug 24, 2026), built from audited fundamentals. The current price: $82.71.
What is the quality score of FTDR?
Frontdoor Inc has a Quality Score of 70/100. 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 Frontdoor Inc (FTDR)?
Frontdoor Inc reported trailing-twelve-month revenue of about $2.1B (latest available figure, as of Aug 24, 2026).
What is the net profit margin of FTDR?
The net profit margin of Frontdoor Inc is about 12.2%, meaning it keeps roughly 12.2% of revenue as net income. Based on the latest reported figures.
Does Frontdoor Inc pay a dividend?
Frontdoor Inc currently shows a dividend yield of about 3.09% relative to its recent price (as of Aug 24, 2026).
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