Dream Finders HomesDFH +1.16%74 ROC (Joel Greenblatt) % is 3.13% as of Mar. 2026, which is 85% below its 10-year median of 21.50. 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 96 Homebuilding & Construction companies, Dream Finders Homes ranks worse than 55.21% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Dream Finders Homes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.13%.
The historical rank and industry rank for Dream Finders Homes's ROC (Joel Greenblatt) % or its related term are showing as below:
DFH'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.09 Med: 21.5 Max: 33.15
Current: 9.09
During the past 8 years, Dream Finders Homes's highest ROC (Joel Greenblatt) % was 33.15%. The lowest was 9.09%. And the median was 21.50%.
DFH's ROC (Joel Greenblatt) % is ranked worse than 55.21% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 11.055
vs DFH: 9.09
Dream Finders Homes's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -5.80% per year.
Dream Finders Homes (NYSE:DFH) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Dream Finders Homes ROC (Joel Greenblatt) % Related Terms
Dream Finders Homes ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Dream Finders Homes's ROC (Joel Greenblatt) % 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.
DFH vs LGIH, HOV, BZH: ROC (Joel Greenblatt) % Comparison
For the Residential Construction subindustry, Dream Finders Homes's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Finders Homes's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Dream Finders Homes's ROC (Joel Greenblatt) % falls into.
Dream Finders Homes ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 3.13% mean?
Dream Finders Homes (DFH) has a ROC (Joel Greenblatt) % of 3.13% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Dream Finders Homes and its competitors. This is 85% below median its historical median of 21.50. Over the past decade, Dream Finders Homes' ROC (Joel Greenblatt) % has ranged from 9.09 to 33.15. According to the industry distribution chart, Dream Finders Homes ranks #53 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 55.2%.
Is Dream Finders Homes' ROC (Joel Greenblatt) % too high?
Dream Finders Homes' current ROC (Joel Greenblatt) % of 3.13% is 85% below median its 10-year median of 21.50. Over the past 10 years, this metric has ranged from a low of 9.09 to a high of 33.15. The Homebuilding & Construction industry median ROC (Joel Greenblatt) % is 11.06. Dream Finders Homes' value of 3.13% is 71.7% below this industry median. Based on the distribution chart, Dream Finders Homes ranks #53 out of 96 companies in the Homebuilding & Construction industry, which is below the industry midpoint. 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' ROC (Joel Greenblatt) % compare to LGIH and HOV?
According to the Homebuilding & Construction industry distribution chart, Dream Finders Homes ranks #53 out of 96 companies for ROC (Joel Greenblatt) %. This places Dream Finders Homes in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.06. Dream Finders Homes' value of 3.13% is 71.7% below this benchmark. Historically, Dream Finders Homes' own ROC (Joel Greenblatt) % has ranged from 9.09 to 33.15 over the past decade. While the company's 10-year median is 21.50 vs. the industry median of 11.06, 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 ROC (Joel Greenblatt) % for a Homebuilding & Construction company?
The median ROC (Joel Greenblatt) % among Homebuilding & Construction companies is 11.06, based on 96 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dream Finders Homes's current ROC (Joel Greenblatt) % of 3.13% is 71.7% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Dream Finders Homes and its competitors. For the Homebuilding & Construction industry, the median ROC (Joel Greenblatt) % is 11.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Finders Homes's current ROC (Joel Greenblatt) % is 3.13%, which is 85% below median its own 10-year median of 21.50. 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 $17.40 — trading 38.3% below its estimated fair value. The current ROC (Joel Greenblatt) % is 3.13%, which is 85% below median its 10-year median of 21.50 and 71.7% below the Homebuilding & Construction industry median of 11.06. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Dream Finders Homes (DFH), the current ROC (Joel Greenblatt) % is 3.13% 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 $17.40 is trading 38.3% below its estimated GF Value™ of $28.19.
GuruFocus considers Dream Finders Homes to be Possible Value Trap.
Key valuation signals for DFH:
ROC (Joel Greenblatt) %: 3.13% (85% below median its 10-year median of 21.50)
GF Value™: $28.19 vs. price of $17.40 (38.3% below fair value)
Industry Position: 71.7% below the Homebuilding & Construction median (#53 of 96)
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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