Volatility is a statistical measure of the dispersion of returns for a given security or market index, it shows how the price swings around its mean. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year. In most cases, the higher the volatility, the riskier the security.
Dream Finders Homes (NYSE:DFH) Volatility Explanation
Volatility is a statistical measure of the dispersion of returns for a given security or market index. It’s often measured as standard deviation or variance of historical returns over a certain period. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year.
Volatility reflects the uncertainty or risk of a security’s value. Generally speaking, a higher volatility suggests a higher risk, because it implies a wider fluctuation around average price. This means the price of the security can change dramatically in either direction within a short period. Conversely, a lower volatility means that the security's price is more steady, which suggests a lower risk.
Another measurement of relative volatility is Beta. Beta is a measure of systematic risk of a security or a portfolio in comparison to the market as a whole. Beta is usually compared to 1. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Dream Finders Homes Volatility Related Terms
DFH vs LGIH, BZH, HOV: Volatility Comparison
For the Residential Construction subindustry, Dream Finders Homes's Volatility, along with its competitors' market caps and Volatility 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 Volatility vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Finders Homes's Volatility distribution charts can be found below:
* The bar in red indicates where Dream Finders Homes's Volatility falls into.
Dream Finders Homes (NYSE:DFH) Volatility Calculation
The annualized volatility is calculated as following:
σA
=
σM
*
√12
=
√ 1/(n-1) ∑(Ri - R')^2
*
√12
Where: σM is the monthly volatility, n is the number of months in the period, Ri is the security's historical monthly returns and R' is the arithmetic mean of monthly returns.
* 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 (DFH) has a Volatility of 45.70% as of Jun. 27, 2026. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Dream Finders Homes and its competitors.
Is Dream Finders Homes' Volatility too high?
Dream Finders Homes' current Volatility is 45.70%. 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' Volatility compare to LGIH and BZH?
Dream Finders Homes' Volatility of 45.70% can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Volatility for a Homebuilding & Construction company?
A good Volatility depends on the Homebuilding & Construction industry context. However, Volatility 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 Volatility mean?
A high Volatility can signal that a stock is expensive relative to its fundamentals. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Dream Finders Homes and its competitors. Dream Finders Homes's current Volatility is 45.70%. 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 $17.20 — trading 39% below its estimated fair value. The current Volatility is 45.70%. 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 Volatility calculated?
Volatility is calculated from a company's financial statements. For Dream Finders Homes (DFH), the current Volatility is 45.70% as of Jun. 27, 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 $17.20 is trading 39% below its estimated GF Value™ of $28.19.
GuruFocus considers Dream Finders Homes to be Possible Value Trap.
Key valuation signals for DFH:
Volatility: 45.70%
GF Value™: $28.19 vs. price of $17.20 (39% below fair value)
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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