Dream Finders HomesDFH +0.84%74 Return-on-Tangible-Equity is 4.45% as of Mar. 2026, which is 90% below its 10-year median of 43.99. GuruFocus rates DFH with a GF Score™ of 74/100 and a GF Value™ of $28.19 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 94 Homebuilding & Construction companies, Dream Finders Homes ranks better than 76.6% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Dream Finders Homes's annualized net income for the quarter that ended in Mar. 2026 was $53 Mil. Dream Finders Homes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,191 Mil. Therefore, Dream Finders Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.45%.
The historical rank and industry rank for Dream Finders Homes's Return-on-Tangible-Equity or its related term are showing as below:
DFH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.32 Med: 43.99 Max: 62.92
Current: 15.32
During the past 8 years, Dream Finders Homes's highest Return-on-Tangible-Equity was 62.92%. The lowest was 15.32%. And the median was 43.99%.
DFH's Return-on-Tangible-Equity is ranked better than 76.6% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs DFH: 15.32
Dream Finders Homes (NYSE:DFH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Dream Finders Homes Return-on-Tangible-Equity Related Terms
Dream Finders Homes Return-on-Tangible-Equity Historical Data
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The historical data trend for Dream Finders Homes's Return-on-Tangible-Equity 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.
Dream Finders Homes Return-on-Tangible-Equity Chart
DFH vs LGIH, HOV, BZH: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Dream Finders Homes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Finders Homes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dream Finders Homes's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.45% mean?
Dream Finders Homes (DFH) has a Return-on-Tangible-Equity of 4.45% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dream Finders Homes and its competitors. This is 90% below median its historical median of 43.99. Over the past decade, Dream Finders Homes' Return-on-Tangible-Equity has ranged from 15.32 to 62.92. According to the industry distribution chart, Dream Finders Homes ranks #22 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 23.4%.
Is Dream Finders Homes' Return-on-Tangible-Equity too high?
Dream Finders Homes' current Return-on-Tangible-Equity of 4.45% is 90% below median its 10-year median of 43.99. Over the past 10 years, this metric has ranged from a low of 15.32 to a high of 62.92. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. Dream Finders Homes' value of 4.45% is 46.3% below this industry median. Based on the distribution chart, Dream Finders Homes ranks #22 out of 94 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Equity compare to LGIH and HOV?
According to the Homebuilding & Construction industry distribution chart, Dream Finders Homes ranks #22 out of 94 companies for Return-on-Tangible-Equity. This places Dream Finders Homes in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.29. Dream Finders Homes' value of 4.45% is 46.3% below this benchmark. Historically, Dream Finders Homes' own Return-on-Tangible-Equity has ranged from 15.32 to 62.92 over the past decade. While the company's 10-year median is 43.99 vs. the industry median of 8.29, Dream Finders Homes has consistently been below 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 Return-on-Tangible-Equity for a Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.29, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dream Finders Homes's current Return-on-Tangible-Equity of 4.45% is 46.3% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dream Finders Homes and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Finders Homes's current Return-on-Tangible-Equity is 4.45%, which is 90% below median its own 10-year median of 43.99. 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 $28.19, compared to a current price of $17.35 — trading 38.5% below its estimated fair value. The current Return-on-Tangible-Equity is 4.45%, which is 90% below median its 10-year median of 43.99 and 46.3% below the Homebuilding & Construction industry median of 8.29. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Dream Finders Homes (DFH), the current Return-on-Tangible-Equity is 4.45% 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 $17.35 is trading 38.5% below its estimated GF Value™ of $28.19.
GuruFocus considers Dream Finders Homes to be Possible Value Trap.
Key valuation signals for DFH:
Return-on-Tangible-Equity: 4.45% (90% below median its 10-year median of 43.99)
GF Value™: $28.19 vs. price of $17.35 (38.5% below fair value)
Industry Position: 46.3% below the Homebuilding & Construction median (#22 of 94)
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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