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D.R. Horton (MEX:DHI) Intrinsic Value: Projected FCF : MXN2,981.38 (As of Dec. 15, 2024)


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What is D.R. Horton Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-12-15), D.R. Horton's Intrinsic Value: Projected FCF is MXN2,981.38. The stock price of D.R. Horton is MXN3549.00. Therefore, D.R. Horton's Price-to-Intrinsic-Value-Projected-FCF of today is 1.2.

The historical rank and industry rank for D.R. Horton's Intrinsic Value: Projected FCF or its related term are showing as below:

MEX:DHI' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.97   Med: 1.61   Max: 4.65
Current: 1.19

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of D.R. Horton was 4.65. The lowest was 0.97. And the median was 1.61.

MEX:DHI's Price-to-Projected-FCF is ranked worse than
71.62% of 74 companies
in the Homebuilding & Construction industry
Industry Median: 0.76 vs MEX:DHI: 1.19

D.R. Horton Intrinsic Value: Projected FCF Historical Data

The historical data trend for D.R. Horton's Intrinsic Value: Projected FCF 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.

* Premium members only.

D.R. Horton Intrinsic Value: Projected FCF Chart

D.R. Horton Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,069.02 1,217.92 1,616.21 1,859.84 2,477.35

D.R. Horton Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,859.84 1,356.18 1,621.52 2,057.84 2,477.35

Competitive Comparison of D.R. Horton's Intrinsic Value: Projected FCF

For the Residential Construction subindustry, D.R. Horton's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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's Price-to-Projected-FCF Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where D.R. Horton's Price-to-Projected-FCF falls into.



D.R. Horton Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get D.R. Horton's Free Cash Flow(6 year avg) = MXN27,335.11.

D.R. Horton's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Sep24)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*27335.10816+498416.626*0.8)/327.400
=2,458.78

* 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  (MEX:DHI) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

D.R. Horton's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=3549.00/2458.7829462017
=1.44

* 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 Intrinsic Value: Projected FCF Related Terms

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D.R. Horton Business Description

Address
1341 Horton Circle, Arlington, TX, USA, 76011
D.R. Horton is a leading homebuilder in the United States with operations in 125 markets across 36 states. D.R. Horton mainly builds single-family detached 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. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.