DCF Tool

DHI

D.R. Horton Inc. – Residential Remodelers
D.R. Horton, Inc., America's Builder, has been the largest homebuilder by volume in the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 88 markets in 29 states across the United States and closed 65,388 homes during its fiscal year ended September 30, 2020. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Emerald Homes, Express Homes and Freedom Homes ranging from $150,000 to over $1,000,000. D.R. Horton also provides mortgage financing, title services and insurance agency services for homebuyers through its mortgage, title and insurance subsidiaries.
Analysis Results
Intrinsic Value $2,882.37
Latest Price $86.14
Relative Value 97% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 53.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 53.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 16.5 15.2
2024 25.3 21.4
2025 38.8 30.1
2026 59.5 42.5
2027 91.2 59.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1370 billion. This corresponds to a present value of 824 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 169 billion. Adding in the terminal value gives a total present value of 993 billion.

There are presently 344.0 million outstanding shares, so the intrinsic value per share is 2882.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 27,768,300,000
Current Cash 2,437,200,000
Current Liabilities 6,069,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,262,100,000
Change in NCWC 5,108,200,000
EBIT 7,570,400,000
Tax Provision 1,734,100,000
Depreciation and Amortization 81,400,000
Capital Expenditure -148,200,000
Unlevered Free Cash Flow 10,891,177,873
Current Assets 22,130,200,000
Current Cash 3,131,400,000
Current Liabilities 4,844,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,153,900,000
Change in NCWC 3,538,600,000
EBIT 5,318,800,000
Tax Provision 1,165,100,000
Depreciation and Amortization 73,900,000
Capital Expenditure -267,400,000
Unlevered Free Cash Flow 7,506,956,983
Current Assets 17,181,300,000
Current Cash 2,962,900,000
Current Liabilities 3,603,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,615,300,000
Change in NCWC 699,600,000
EBIT 2,890,800,000
Tax Provision 602,500,000
Depreciation and Amortization 80,400,000
Capital Expenditure -96,500,000
Unlevered Free Cash Flow 2,990,422,360
Current Assets 14,167,600,000
Current Cash 1,450,900,000
Current Liabilities 2,801,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,915,700,000
Change in NCWC 830,100,000
EBIT 2,040,000,000
Tax Provision 506,700,000
Depreciation and Amortization 72,000,000
Capital Expenditure -127,200,000
Unlevered Free Cash Flow 2,328,536,663
Current Assets 12,914,900,000
Current Cash 1,439,400,000
Current Liabilities 2,389,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,085,600,000
Change in NCWC 964,100,000
EBIT 1,995,900,000
Tax Provision 597,700,000
Depreciation and Amortization 62,400,000
Capital Expenditure -68,100,000
Unlevered Free Cash Flow 2,375,198,334
Current Assets 11,039,400,000
Current Cash 973,000,000
Current Liabilities 1,944,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,121,500,000
Change in NCWC 817,200,000
EBIT 1,631,300,000
Tax Provision 563,700,000
Depreciation and Amortization 54,700,000
Capital Expenditure -157,300,000
Unlevered Free Cash Flow 1,771,925,959
Current Assets 10,505,100,000
Current Cash 1,271,800,000
Current Liabilities 1,929,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,304,300,000
Change in NCWC 424,300,000
EBIT 1,379,400,000
Tax Provision 467,200,000
Depreciation and Amortization 61,000,000
Capital Expenditure -86,100,000
Unlevered Free Cash Flow 1,302,459,859
Current Assets 10,156,000,000
Current Cash 1,389,800,000
Current Liabilities 1,886,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,880,000,000
Change in NCWC 83,500,000
EBIT 1,175,100,000
Tax Provision 372,700,000
Depreciation and Amortization 54,100,000
Capital Expenditure -56,100,000
Unlevered Free Cash Flow 866,747,970
Current Assets 9,164,000,000
Current Cash 653,300,000
Current Liabilities 1,714,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,796,500,000
Change in NCWC 1,289,800,000
EBIT 886,300,000
Tax Provision 280,700,000
Depreciation and Amortization 38,400,000
Capital Expenditure -100,200,000
Unlevered Free Cash Flow 1,808,743,122
Current Assets 7,927,500,000
Current Cash 933,600,000
Current Liabilities 1,487,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,506,700,000
Change in NCWC 1,755,100,000
EBIT 679,100,000
Tax Provision 195,100,000
Depreciation and Amortization 22,700,000
Capital Expenditure -58,000,000
Unlevered Free Cash Flow 2,197,482,532
Current Assets 6,296,700,000
Current Cash 1,328,400,000
Current Liabilities 1,216,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,751,600,000
Change in NCWC 693,500,000
EBIT 260,500,000
Tax Provision -713,400,000
Depreciation and Amortization 18,800,000
Capital Expenditure -33,600,000
Unlevered Free Cash Flow 939,200,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.