Dream Finders HomesDFH -0.26%74 Debt-to-EBITDA is 17.55 as of Mar. 2026, which is 327% above its 10-year median of 4.11. GuruFocus rates DFH with a GF Score™ of 74/100 and a GF Value™ of $28.35 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 81 Homebuilding & Construction companies, Dream Finders Homes ranks worse than 70.37% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Dream Finders Homes's Debt-to-EBITDA or its related term are showing as below:
DFH'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.9 Med: 4.11 Max: 7.82
Current: 7.82
During the past 8 years, the highest Debt-to-EBITDA Ratio of Dream Finders Homes was 7.82. The lowest was 1.90. And the median was 4.11.
DFH's Debt-to-EBITDA is ranked worse than 70.37% of 81
companies
in the Homebuilding & Construction industry
Industry Median: 3.64
vs DFH: 7.82
Dream Finders Homes (NYSE:DFH) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Dream Finders Homes Debt-to-EBITDA Related Terms
Dream Finders Homes Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Dream Finders Homes's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, Dream Finders Homes's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dream Finders Homes Debt-to-EBITDA vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Finders Homes's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Dream Finders Homes's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Dream Finders Homes (DFH) has a Debt-to-EBITDA of 17.55 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Dream Finders Homes. This is 327% above median its historical median of 4.11. Over the past decade, Dream Finders Homes' Debt-to-EBITDA has ranged from 1.90 to 7.82. According to the industry distribution chart, Dream Finders Homes ranks #57 out of 81 companies in the Homebuilding & Construction industry, placing it in the top 70.4%.
Is Dream Finders Homes' Debt-to-EBITDA too high?
Dream Finders Homes' current Debt-to-EBITDA of 17.55 is 327% above median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 7.82. The Homebuilding & Construction industry median Debt-to-EBITDA is 3.64. Dream Finders Homes' value of 17.55 is 382.1% above this industry median. Based on the distribution chart, Dream Finders Homes ranks #57 out of 81 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Dream Finders Homes has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dream Finders Homes' Debt-to-EBITDA compare to LGIH and HOV?
According to the Homebuilding & Construction industry distribution chart, Dream Finders Homes ranks #57 out of 81 companies for Debt-to-EBITDA. This places Dream Finders Homes in the lower half of its industry. The industry median Debt-to-EBITDA is 3.64. Dream Finders Homes' value of 17.55 is 382.1% above this benchmark. Historically, Dream Finders Homes' own Debt-to-EBITDA has ranged from 1.90 to 7.82 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 3.64, Dream Finders Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Homebuilding & Construction company?
The median Debt-to-EBITDA among Homebuilding & Construction companies is 3.64, based on 81 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dream Finders Homes's current Debt-to-EBITDA of 17.55 is 382.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Dream Finders Homes. For the Homebuilding & Construction industry, the median Debt-to-EBITDA is 3.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Finders Homes's current Debt-to-EBITDA is 17.55, which is 327% above median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Finders Homes stock overvalued right now?
Based on GuruFocus' analysis, Dream Finders Homes (DFH) is currently considered Possible Value Trap. The stock's GF Value™ is $28.35, compared to a current price of $15.61 — trading 44.9% below its estimated fair value. The current Debt-to-EBITDA is 17.55, which is 327% above median its 10-year median of 4.11 and 382.1% above the Homebuilding & Construction industry median of 3.64. Dream Finders Homes' overall GF Score™ is 74/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Dream Finders Homes (DFH), the current Debt-to-EBITDA is 17.55 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dream Finders Homes (DFH) Overvalued in 2026?
Based on GuruFocus' analysis, Dream Finders Homes stock appears to be undervalued.
The current stock price of $15.61 is trading 44.9% below its estimated GF Value™ of $28.35.
GuruFocus considers Dream Finders Homes to be Possible Value Trap.
Key valuation signals for DFH:
Debt-to-EBITDA: 17.55 (327% above median its 10-year median of 4.11)
GF Value™: $28.35 vs. price of $15.61 (44.9% below fair value)
Industry Position: 382.1% above the Homebuilding & Construction median (#57 of 81)
No single metric tells the full story. See the DFH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dream Finders Homes Inc designs, builds and sells homes in markets throughout the United States. The company's primary focus is on constructing and selling single-family homes across entry-level, first-time move-up, second-time move-up, and active adult markets. Its homebuilding operations are organized into four reportable segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It generates the maximum of its revenue from the Midwest segment.
74GF Score
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