DCF Tool

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 $604.32
Latest Price $147.46
Relative Value 76% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 19.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.9%, 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)
2024 7.45 6.89
2025 8.93 7.63
2026 10.7 8.45
2027 12.8 9.36
2028 15.4 10.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 253 billion. This corresponds to a present value of 158 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 42.7 billion. Adding in the terminal value gives a total present value of 201 billion.

There are presently 332.0 million outstanding shares, so the intrinsic value per share is 604.32.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 29,786,200,000
Current Cash 3,684,500,000
Current Liabilities 5,971,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 20,130,200,000
Change in NCWC 868,100,000
EBIT 6,101,600,000
Tax Provision 1,519,500,000
Depreciation and Amortization 91,600,000
Capital Expenditure -148,600,000
Unlevered Free Cash Flow 5,444,478,041
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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