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D.R. Horton PE Ratio

: 4.81 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-08-09), D.R. Horton's share price is $74.92. D.R. Horton's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $15.57. Therefore, D.R. Horton's PE Ratio for today is 4.81.


The historical rank and industry rank for D.R. Horton's PE Ratio or its related term are showing as below:

DHI' s PE Ratio Range Over the Past 10 Years
Min: 3.89   Med: 12.71   Max: 50.48
Current: 4.83


During the past 13 years, the highest PE Ratio of D.R. Horton was 50.48. The lowest was 3.89. And the median was 12.71.


DHI's PE Ratio is ranked better than
75% of 96 companies
in the Homebuilding & Construction industry
Industry Median: 7.94 vs DHI: 4.83

D.R. Horton's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $4.67. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $15.57.

As of today (2022-08-09), D.R. Horton's share price is $74.92. D.R. Horton's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $15.57. Therefore, D.R. Horton's PE Ratio without NRI for today is 4.81.

During the past 13 years, D.R. Horton's highest PE Ratio without NRI was 50.48. The lowest was 3.89. And the median was 12.71.

D.R. Horton's EPS without NRI for the three months ended in Jun. 2022 was $4.67. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $15.57.

During the past 12 months, D.R. Horton's average EPS without NRI Growth Rate was 56.20% per year. During the past 3 years, the average EPS without NRI Growth Rate was 44.10% per year. During the past 5 years, the average EPS without NRI Growth Rate was 35.20% per year. During the past 10 years, the average EPS without NRI Growth Rate was 29.60% per year.

During the past 13 years, D.R. Horton's highest 3-Year average EPS without NRI Growth Rate was 157.80% per year. The lowest was -9.80% per year. And the median was 38.05% per year.

D.R. Horton's EPS (Basic) for the three months ended in Jun. 2022 was $4.70. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2022 was $15.72.


D.R. Horton PE Ratio Historical Data

The historical data trend for D.R. Horton's PE Ratio 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 Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.23 11.07 12.29 11.80 7.36

D.R. Horton Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 9.06 7.36 8.70 5.34 4.25

Competitive Comparison

For the Residential Construction subindustry, D.R. Horton's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's PE Ratio distribution charts can be found below:

* The bar in red indicates where D.R. Horton's PE Ratio falls into.



D.R. Horton PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

D.R. Horton's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=74.92/15.570
=4.81

D.R. Horton's Share Price of today is $74.92.
D.R. Horton's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $15.57.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


D.R. Horton  (NYSE:DHI) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


D.R. Horton PE Ratio Related Terms

Thank you for viewing the detailed overview of D.R. Horton's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


D.R. Horton Business Description

D.R. Horton logo
Address
1341 Horton Circle, Arlington, TX, USA, 76011
D.R. Horton is a leading homebuilder in the United States with operations in 98 markets across 31 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.
Executives
Romanowski Paul J officer: EVP and COO 1341 HORTON CIRCLE ARLINGTON TX 76011
Carson Benjamin Sr director PO BOX 3599 BATTLE CREEK MI 49016-3599
Miller Maribess L director 2711 N. HASKELL AVENUE SUITE 2300 DALLAS TX 75204
Odom Aron M. officer: VP, Controller and PAO 1341 HORTON CIRCLE ARLINGTON TX 76011
Murray Michael J officer: EVP and COO 1361 HORTON CIRCLE ARLINGTON TX 76011
Allen Barbara K director 1361 HORTON CIRCLE ARLINGTON TX 76011
Auld David V officer: EVP and COO 1361 HORTON CIRCLE ARLINGTON TX 76011
Buchanan Michael R director 1341 HORTON CIRCLE ARLINGTON TX 76011
Hewatt Michael W director 1361 HORTON CIRCLE ARLINGTON TX 76011
Anderson Bradley S director 1361 HORTON CIRCLE ARLINGTON TX 76011
Dwyer Stacey officer: EVP and Treasurer 301 COMMERCE STREET SUITE 500 FORT WORTH TX 76102
Horton Donald R director, officer: Chairman 1361 HORTON CIRCLE ARLINGTON TX 76011
Wheat Bill W director, officer: EVP and CFO 1361 HORTON CIRCLE ARLINGTON TX 76011
Tomnitz Donald J director, officer: President and CEO 2221 E. LAMAR BLVD. SUITE 790 ARLINGTON TX 76006
Scott Bobby G director 301 COMMERCE STREET SUITE 500 FORT WORTH TX 76102

D.R. Horton Headlines

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