D.R. Horton, Inc (DHI) Fair Value & Analysis
Consumer Cyclical · US · Market cap $42.4B
D.R. Horton, Inc
DHI · US
Fair value as of: Jul 19, 2026
From 26 valuation models · updated 19 days ago
Share price −6.2% over the past month.
A solid business, screening 47% undervalued on our models.
What matters now
- Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($131.50 to $292.49) 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 Jul 19, 2026.
How to read this chart
60‑month range $58.13 – $193.15 · fair‑value band $131.50 – $292.49 · the $146.01 price screens below the $214.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.
Analysis
D.R. Horton, Inc (DHI) currently trades at $146.01, while our model-based Fair Value estimate is $214.93, implying the stock looks roughly 47.2% undervalued today. We read business quality at 57/100 (solid quality), in the Consumer Cyclical 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, D.R. 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 Jul 19, 2026
Our scenario range runs from $131.50 (bear case) to $292.49 (bull case); at $146.01, 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 20% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 41% fair-value upside, at 47%, DHI 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.
All 26 models by family
Widest divergence: DCF Models ($266.27) versus Dividend Discount ($28.09). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 65 · Market factors (momentum, volatility) 40
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
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
D.R. 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.
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Peer Group
Residential Construction · 66 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
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: 46/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| PulteGroup, Inc PHM | $124.75 | $193.56 | +55% |
| Lennar Corporation LEN | $83.89 | $146.58 | +75% |
| NVR, Inc NVR | $6,479 | $7,821 | +21% |
| Toll Brothers, Inc TOL | $150.76 | $225.76 | +50% |
| Taylor Morrison Home Corporation TMHC | $72.13 | $144.47 | +100% |
| Installed Building Products, Inc IBP | $228.65 | $209.51 | -8% |
| Meritage Homes Corporation MTH | $73.83 | $104.26 | +41% |
| Champion Homes, Inc SKY | $82.70 | $75.12 | -9% |
| Cavco Industries, Inc CVCO | $569.16 | $421.10 | -26% |
| M/I Homes, Inc MHO | $149.53 | $179.57 | +20% |
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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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