DHI Intrinsic Value

DHI

D.R. Horton Inc. – Residential Remodelers

d.r. horton - america's builder d.r. horton is dedicated to building quality crafted, distinctive homes across the united states. the company has developed a reputation for high quality homes with features and amenities other builders often consider options or upgrades. the flexible home designs, attention to detail and affordable pricing are what make d.r. horton a national leader in the residential home building industry. donald r. horton began his own construction business in 1978 in the dallas/fort worth metroplex. in 1987, d.r. horton began expanding its operations by seeking out the nation's most active homebuilding markets. additionally, d.r. horton provides mortgage and title insurance services in many of its markets.

Analysis Results

Intrinsic Value	$3,355.83
Latest Price	$109.30
Relative Value	97% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 8.1%. 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	15.3
2024	25.3	21.7
2025	38.8	30.8
2026	59.5	43.6
2027	91.2	61.9

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1530 billion. This corresponds to a present value of 962 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 173 billion. Adding in the terminal value gives a total present value of 1140 billion.

There are presently 338.0 million outstanding shares, so the intrinsic value per share is 3355.83.

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

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