D.R. HortonFRA:HO2 -0.50%92 Return-on-Tangible-Equity is 11.05% as of Mar. 2026, which is 41% below its 10-year median of 18.81. GuruFocus rates FRA:HO2 with a GF Score™ of 92/100 and a GF Value™ of €133.04 (Fairly Valued). The stock has 6 warning signs investors should review. Among 94 Homebuilding & Construction companies, D.R. Horton ranks better than 70.21% 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. D.R. Horton's annualized net income for the quarter that ended in Mar. 2026 was €2,242 Mil. D.R. Horton's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €20,294 Mil. Therefore, D.R. Horton's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.05%.
The historical rank and industry rank for D.R. Horton's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HO2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.3 Med: 18.81 Max: 34.52
Current: 13.3
During the past 13 years, D.R. Horton's highest Return-on-Tangible-Equity was 34.52%. The lowest was 13.30%. And the median was 18.81%.
FRA:HO2's Return-on-Tangible-Equity is ranked better than 70.21% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs FRA:HO2: 13.30
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.
D.R. Horton Return-on-Tangible-Equity Related Terms
D.R. Horton Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for D.R. Horton'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.
FRA:HO2 vs PHM, LEN, NVR: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, D.R. Horton'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.
D.R. Horton Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where D.R. Horton'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 11.05% mean?
D.R. Horton (FRA:HO2) has a Return-on-Tangible-Equity of 11.05% 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 D.R. Horton and its competitors. This is 41% below median its historical median of 18.81. Over the past decade, D.R. Horton's Return-on-Tangible-Equity has ranged from 13.30 to 34.52. According to the industry distribution chart, D.R. Horton ranks #28 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 29.8%.
Is D.R. Horton's Return-on-Tangible-Equity too high?
D.R. Horton's current Return-on-Tangible-Equity of 11.05% is 41% below median its 10-year median of 18.81. Over the past 10 years, this metric has ranged from a low of 13.30 to a high of 34.52. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. D.R. Horton's value of 11.05% is 33.4% above this industry median. Based on the distribution chart, D.R. Horton ranks #28 out of 94 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 Return-on-Tangible-Equity compare to PHM and LEN?
According to the Homebuilding & Construction industry distribution chart, D.R. Horton ranks #28 out of 94 companies for Return-on-Tangible-Equity. This puts D.R. Horton in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.29. D.R. Horton's value of 11.05% is 33.4% above this benchmark. Historically, D.R. Horton's own Return-on-Tangible-Equity has ranged from 13.30 to 34.52 over the past decade. While the company's 10-year median is 18.81 vs. the industry median of 8.29, 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 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. D.R. Horton's current Return-on-Tangible-Equity of 11.05% is 33.4% 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 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 D.R. Horton 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. D.R. Horton's current Return-on-Tangible-Equity is 11.05%, which is 41% below median its own 10-year median of 18.81. 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 €133.04, compared to a current price of €138.15 — trading 3.8% above its estimated fair value. The current Return-on-Tangible-Equity is 11.05%, which is 41% below median its 10-year median of 18.81 and 33.4% above the Homebuilding & Construction industry median of 8.29. D.R. Horton's overall GF Score™ is 92/100 with 6 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 D.R. Horton (FRA:HO2), the current Return-on-Tangible-Equity is 11.05% 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 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 €138.15 is trading 3.8% above its estimated GF Value™ of €133.04.
GuruFocus considers D.R. Horton to be Fairly Valued.
Key valuation signals for FRA:HO2:
Return-on-Tangible-Equity: 11.05% (41% below median its 10-year median of 18.81)
GF Value™: €133.04 vs. price of €138.15 (3.8% above fair value)
Industry Position: 33.4% above the Homebuilding & Construction median (#28 of 94)
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
Get the complete analysis for FRA:HO2
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:HO2 has been successfully added to your 
