D.R. Horton Inc. (DHI) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
D.R. Horton is the largest homebuilder in the United States with operations in 126 markets across 36 states. D.R. Horton mainly builds single-family homes (over 90% of home sales revenue) and offer...
D.R. Horton Inc. (DHI) currently trades at a P/E ratio of 12.77 (historical range: 4.24–15.32, median: 9.55), placing it at the 83th percentile — expensive relative to its history, P/S ratio of 1.17 (range: 0.71–1.76, 40th percentile — near its historical average), EV/EBITDA of 10.99 (range: 10.56–12.75, 12th percentile).
Over the historical period (2021-09-14 to 2026-10-16), D.R. Horton Inc.'s P/E ratio has expanded by 63% over the observed period (from an average of 7.2 to 11.7).
D.R. Horton Inc. trades near its historical valuation range, with most metrics close to their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 12.77 | 9.55 | 83th | expensive relative to its history |
| P/S Ratio | 1.17 | 1.23 | 40th | near its historical average |
| EV/EBITDA | 10.99 | 11.53 | 12th | cheap relative to its history |
| FCF Yield | 8.21% | 6.28% | 87th | cheap relative to its history |
D.R. Horton Inc. (DHI) Valuation & P/E History
D.R. Horton Inc. (DHI) is a US-listed stock operating in the Industrials sector, specifically the Operative Builders industry currently trading at $138.54 with a market capitalization of $38.8 billion. This page provides historical valuation analysis for DHI based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 12.77 is above the historical median of 9.55, placing DHI at the 83th percentile of its valuation range. The P/S ratio of 1.17 compares to a median of 1.23.
DHI Valuation Metrics & Historical Range
The valuation table above shows D.R. Horton Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether DHI is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests DHI is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for D.R. Horton Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is DHI Overvalued or Undervalued?
D.R. Horton Inc. trades near its historical valuation range, with most metrics close to their median levels. The overall valuation percentile of 45 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive DHI is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full DHI analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.DHI trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.