D.R. HortonFRA:HO2 -0.61%92 FCF Yield % is 7.42 as of Jun. 27, 2026, which is 90% above its 10-year median of 3.90. GuruFocus rates FRA:HO2 with a GF Score™ of 92/100 and a GF Value™ of €133.70 (Fairly Valued). The stock has 7 warning signs investors should review. Among 96 Homebuilding & Construction companies, D.R. Horton ranks better than 71.87% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
D.R. Horton FCF Yield % Related Terms
D.R. Horton FCF Yield % Historical Data
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The historical data trend for D.R. Horton's FCF Yield % 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, D.R. Horton's FCF Yield %, along with its competitors' market caps and FCF Yield % 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.
D.R. Horton FCF Yield % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's FCF Yield % distribution charts can be found below:
* The bar in red indicates where D.R. Horton's FCF Yield % 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.
D.R. Horton (FRA:HO2) has a FCF Yield % of 7.42 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on D.R. Horton and its competitors. This is 90% above median its historical median of 3.90. According to the industry distribution chart, D.R. Horton ranks #27 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 28.1%.
Is D.R. Horton's FCF Yield % too high?
D.R. Horton's current FCF Yield % of 7.42 is 90% above median its 10-year median of 3.90. The Homebuilding & Construction industry median FCF Yield % is 2.53. D.R. Horton's value of 7.42 is 193.9% above this industry median. Based on the distribution chart, D.R. Horton ranks #27 out of 96 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, D.R. Horton has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does D.R. Horton's FCF Yield % compare to PHM and LEN?
According to the Homebuilding & Construction industry distribution chart, D.R. Horton ranks #27 out of 96 companies for FCF Yield %. This puts D.R. Horton in the upper half of its industry. The industry median FCF Yield % is 2.53. D.R. Horton's value of 7.42 is 193.9% above this benchmark. While the company's 10-year median is 3.90 vs. the industry median of 2.53, D.R. Horton 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 FCF Yield % for a Homebuilding & Construction company?
The median FCF Yield % among Homebuilding & Construction companies is 2.53, based on 96 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. D.R. Horton's current FCF Yield % of 7.42 is 193.9% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on D.R. Horton and its competitors. For the Homebuilding & Construction industry, the median FCF Yield % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D.R. Horton's current FCF Yield % is 7.42, which is 90% above median its own 10-year median of 3.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D.R. Horton stock overvalued right now?
Based on GuruFocus' analysis, D.R. Horton (FRA:HO2) is currently considered Fairly Valued. The stock's GF Value™ is €133.70, compared to a current price of €145.45 — trading 8.8% above its estimated fair value. The current FCF Yield % is 7.42, which is 90% above median its 10-year median of 3.90 and 193.9% above the Homebuilding & Construction industry median of 2.53. D.R. Horton's overall GF Score™ is 92/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For D.R. Horton (FRA:HO2), the current FCF Yield % is 7.42 as of Jun. 27, 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 D.R. Horton (FRA:HO2) Overvalued in 2026?
Based on GuruFocus' analysis, D.R. Horton stock appears to be overvalued.
The current stock price of €145.45 is trading 8.8% above its estimated GF Value™ of €133.70.
GuruFocus considers D.R. Horton to be Fairly Valued.
Key valuation signals for FRA:HO2:
FCF Yield %: 7.42 (90% above median its 10-year median of 3.90)
GF Value™: €133.70 vs. price of €145.45 (8.8% above fair value)
Industry Position: 193.9% above the Homebuilding & Construction median (#27 of 96)
No single metric tells the full story. See the FRA:HO2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. The firm has majority ownership of Forestar Group, a publicly traded residential lot development company. D.R. Horton's headquarters are in Arlington, Texas.
92GF Score
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