American Homes 4 Rent (LTS:0HEJ) Margin of Safety % (DCF FCF Based): -24.09% (As of Aug. 04, 2026)

Author: Vera Yuan Vera Yuan
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Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LTS:0HEJ American Homes 4 Rent LTS:0HEJ
83 GF Score
Price $34.27
GF Value $39.33
Valuation Modestly Undervalued
! 8 Warning Signs
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What is American Homes 4 Rent Margin of Safety % (DCF FCF Based)?

American Homes 4 Rent LTS:0HEJ +1.94% 83 Margin of Safety % (DCF FCF Based) is -24.09% as of Aug. 04, 2026. GuruFocus rates LTS:0HEJ with a GF Score™ of 83/100 and a GF Value™ of $39.33 (Modestly Undervalued). The stock has 8 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-08-04), American Homes 4 Rent's Predictability Rank is 4-Stars. American Homes 4 Rent's intrinsic value calculated from the Discounted FCF model is $25.19 and current share price is $34.2727. Consequently,

American Homes 4 Rent's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -24.09%.


LTS:0HEJ vs CPT, ELS, UDR: Margin of Safety % (DCF FCF Based) Comparison

For the REIT - Residential subindustry, American Homes 4 Rent's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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.


American Homes 4 Rent Margin of Safety % (DCF FCF Based) vs REITs Industry

For the REITs industry and Real Estate sector, American Homes 4 Rent's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Margin of Safety % (DCF FCF Based) falls into.


LTS:0HEJ
83GF Score
American Homes 4 Rent LTS:0HEJ
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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American Homes 4 Rent Margin of Safety % (DCF FCF Based) Calculation

American Homes 4 Rent's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(27.62-34.2727)/27.62
=-24.09 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -24.09% mean?
American Homes 4 Rent (LTS:0HEJ) has a Margin of Safety % (DCF FCF Based) of -24.09% as of Aug. 04, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on American Homes 4 Rent.
Is American Homes 4 Rent's Margin of Safety % (DCF FCF Based) too high?
American Homes 4 Rent's current Margin of Safety % (DCF FCF Based) is -24.09%. Overall, American Homes 4 Rent has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Homes 4 Rent's Margin of Safety % (DCF FCF Based) compare to CPT and ELS?
American Homes 4 Rent's Margin of Safety % (DCF FCF Based) of -24.09% can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a REITs company?
A good Margin of Safety % (DCF FCF Based) depends on the REITs industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on American Homes 4 Rent. American Homes 4 Rent's current Margin of Safety % (DCF FCF Based) is -24.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Homes 4 Rent stock overvalued right now?
Based on GuruFocus' analysis, American Homes 4 Rent (LTS:0HEJ) is currently considered Modestly Undervalued. The stock's GF Value™ is $39.33, compared to a current price of $34.27 — trading 12.9% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is -24.09%. American Homes 4 Rent's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For American Homes 4 Rent (LTS:0HEJ), the current Margin of Safety % (DCF FCF Based) is -24.09% as of Aug. 04, 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 American Homes 4 Rent (LTS:0HEJ) Overvalued in 2026?

Based on GuruFocus' analysis, American Homes 4 Rent stock appears to be undervalued. The current stock price of $34.27 is trading 12.9% below its estimated GF Value™ of $39.33. GuruFocus considers American Homes 4 Rent to be Modestly Undervalued.

Key valuation signals for LTS:0HEJ:

  • Margin of Safety % (DCF FCF Based): -24.09%
  • GF Value™: $39.33 vs. price of $34.27 (12.9% below fair value)
  • GF Score™: 83/100 with 8 warning signs

No single metric tells the full story. See the LTS:0HEJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


American Homes 4 Rent Business Description

Industry Real EstateREITs
Address 280 Pilot Road, Las Vegas, NV, USA, 89119
American Homes 4 Rent is a real estate investment trust focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.
83GF Score

Get the complete analysis for LTS:0HEJ

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$34.27
Price
$39.33
GF Value