American Homes 4 Rent

AMH

Real EstateREIT - ResidentialNYSE

$31.57

Market Cap: $11.46B

American Homes 4 Rent (AMH) Valuation Summary

Updated Apr 28, 2026 22:22

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$18.39 – $193.15	$40.51	+28.7%
Growth Exit 10Y	$24.79 – $226.79	$50.59	+60.7%
EBITDA Exit 5Y	$21.20 – $47.48	$33.26	+5.7%
EBITDA Exit 10Y	$26.96 – $63.32	$42.56	+35.2%
▸ Trading Multiples
P/E	$23.25 – $39.13	$29.07	-7.7%
EV/EBITDA	$31.95 – $54.34	$38.63	+22.7%
EV/Revenue	$33.20 – $53.25	$36.19	+15.0%
▸ PEG
PEG Fair Value	$5.82 – $5.82	$5.82	-81.5%
▸ Earnings Power Value
Earnings Power Value	$11.29 – $26.15	$17.01	-46.0%
▸ Dividend Discount
Dividend Discount	$22.89 – $57.98	$34.00	+8.0%

Valuation History

DCF Analysis

Fair Value

$40.51

Market Price

$31.57

Upside / Downside

+28.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Homes 4 Rent's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.8% to 9.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 12, DPO 5, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $40.51 per share, suggesting AMH is undervalued by 28.3% at the current price of $31.57.

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	576	597	623	681	745	764
(−) Net Interest	175	181	189	207	226	232
(+) D&A	127	133	137	144	155	159
EBITDA	878	912	949	1,031	1,126	1,155

(−) Tax	0	0	0	0	0	0
(−) CapEx	153	159	166	181	198	203
(−) ΔWC	179	8	10	23	25	25
Free Cash Flow (FCFF)	546	745	773	828	904	926

Terminal Value						23,077
WACC / Discount Rate	6.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	529	677	661	664	680	16,833

Enterprise Value	20,043
Projection Period	3,210	16.0%
Terminal Value	16,833	84.0%

(−) Current Net Debt	5,017

Equity Value	15,026
(/) Outstanding Shares	371

Fair Price	$40.51

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.5%	$62	$75	$95	$128	$193
5.5%	$43	$50	$59	$71	$90
6.5%	$31	$35	$41	$47	$56
7.5%	$24	$26	$30	$33	$38
8.5%	$18	$20	$22	$25	$28

Current price: $31.57. Green = undervalued, Red = overvalued.

Fair Value

$50.59

Market Price

$31.57

Upside / Downside

+60.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Homes 4 Rent's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.8% to 4.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 12, DPO 5, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (72% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $50.59 per share, suggesting AMH is undervalued by 60.2% at the current price of $31.57.

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	576	597	623	681	745	807	866	919	966	1,006	1,031
(−) Net Interest	175	181	189	207	226	245	262	279	293	305	312
(+) D&A	127	133	137	144	155	171	184	198	214	229	235
EBITDA	878	912	949	1,031	1,126	1,223	1,312	1,396	1,473	1,539	1,578

(−) Tax	0	0	0	0	0	0	0	0	0	0	0
(−) CapEx	153	159	166	181	198	215	230	245	257	267	274
(−) ΔWC	179	8	10	23	25	24	23	21	18	15	16
Free Cash Flow (FCFF)	546	745	773	828	904	985	1,059	1,131	1,198	1,257	1,288

Terminal Value											32,094
WACC / Discount Rate	6.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	529	677	661	664	680	696	703	704	701	690	17,076

Enterprise Value	23,780
Projection Period	6,704	28.2%
Terminal Value	17,076	71.8%

(−) Current Net Debt	5,017

Equity Value	18,762
(/) Outstanding Shares	371

Fair Price	$50.59

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.5%	$81	$95	$117	$154	$227
5.5%	$56	$63	$73	$86	$106
6.5%	$41	$45	$51	$57	$66
7.5%	$32	$34	$37	$41	$46
8.5%	$25	$26	$28	$31	$34

Current price: $31.57. Green = undervalued, Red = overvalued.

Fair Value

$33.27

Market Price

$31.57

Upside / Downside

+5.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Homes 4 Rent's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.8% to 9.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 12, DPO 5, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $33.26 per share, suggesting AMH is fairly valued by 5.4% at the current price of $31.57.

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

EV/EBITDA Exit Multiple

16.80x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	576	597	623	681	745	764
(−) Net Interest	175	181	189	207	226	232
(+) D&A	127	133	137	144	155	159
EBITDA	878	912	949	1,031	1,126	1,155

(−) Tax	0	0	0	0	0	—
(−) CapEx	153	159	166	181	198	—
(−) ΔWC	179	8	10	23	25	—
Free Cash Flow (FCF)	546	745	773	828	904	—

Peers' EBITDA Multiple						16.8x
Terminal Value						19,397
WACC / Discount Rate	6.51%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	529	677	661	664	680	14,149

Enterprise Value	17,359
Projection Period	3,210	18.5%
Terminal Value	14,149	81.5%

(−) Current Net Debt	5,017
Equity Value	12,342
(÷) Outstanding Shares	371M
Fair Price	$33	+5.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.8x	14.8x	16.8x	18.8x	20.8x
4.5%	$28	$33	$37	$42	$47
5.5%	$26	$31	$35	$40	$45
6.5%	$24	$29	$33	$38	$42
7.5%	$23	$27	$31	$36	$40
8.5%	$21	$25	$29	$34	$38

Current price: $31.57. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$42.57

Market Price

$31.57

Upside / Downside

+34.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Homes 4 Rent's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.8% to 4.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 12, DPO 5, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (68% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $42.56 per share, suggesting AMH is undervalued by 34.8% at the current price of $31.57.

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

EV/EBITDA Exit Multiple

16.80x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	576	597	623	681	745	807	866	919	966	1,006	1,031
(−) Net Interest	175	181	189	207	226	245	262	279	293	305	312
(+) D&A	127	133	137	144	155	171	184	198	214	229	235
EBITDA	878	912	949	1,031	1,126	1,223	1,312	1,396	1,473	1,539	1,578

(−) Tax	0	0	0	0	0	0	0	0	0	0	—
(−) CapEx	153	159	166	181	198	215	230	245	257	267	—
(−) ΔWC	179	8	10	23	25	24	23	21	18	15	—
Free Cash Flow (FCF)	546	745	773	828	904	985	1,059	1,131	1,198	1,257	—

Peers' EBITDA Multiple											16.8x
Terminal Value											26,507
WACC / Discount Rate	6.51%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	529	677	661	664	680	696	703	704	701	690	14,103

Enterprise Value	20,807
Projection Period	6,704	32.2%
Terminal Value	14,103	67.8%

(−) Current Net Debt	5,017
Equity Value	15,790
(÷) Outstanding Shares	371M
Fair Price	$43	+34.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.8x	14.8x	16.8x	18.8x	20.8x
4.5%	$41	$47	$52	$58	$63
5.5%	$37	$42	$47	$52	$57
6.5%	$34	$38	$43	$47	$52
7.5%	$30	$34	$38	$42	$47
8.5%	$27	$31	$34	$38	$42

Current price: $31.57. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$29.07

Market Price

$31.57

Upside / Downside

-7.9%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), American Homes 4 Rent (AMH) has a fair value of $29.07 based on 10 comparable companies in the REIT - Residential industry.

P/E Valuation — REIT - Residential

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
American Homes 4 RentAMH	11,710	26.8x	35.4x
Mid-America Apartment Communities, Inc.MAA	15,169	34.5x	39.0x
Regency Centers CorporationREG	14,703	28.5x	33.4x
Host Hotels & Resorts, Inc.HST	14,393	19.0x	21.7x
Omega Healthcare Investors, Inc.OHI	14,016	24.4x	24.1x
Lamar Advertising CompanyLAMR	13,698	23.4x	27.1x
Gaming and Leisure Properties, Inc.GLPI	13,600	16.3x	17.1x
AGNC Investment Corp.AGNC	12,445	7.5x	5.7x
Equity LifeStyle Properties, Inc.ELS	12,140	32.4x	30.8x
UDR, Inc.UDR	11,898	32.0x	74.2x
Camden Property TrustCPT	11,094	29.9x	69.5x
Industry Median		26.5x	28.9x
(*) Profit after tax		453	331
Equity Value		11,986	9,577
(/) Outstanding shares		371	371
Fair Price		$32	$26

Selected Fair Value (avg of trailing + forward)

$29.07

-7.9%

Fair Value

$38.63

Market Price

$31.57

Upside / Downside

+22.4%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), American Homes 4 Rent (AMH) has a fair value of $38.63 based on 10 comparable companies in the REIT - Residential industry.

EV/EBITDA Valuation — REIT - Residential

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
American Homes 4 RentAMH	11,710	13.9x	15.0x
Mid-America Apartment Communities, Inc.MAA	15,169	15.6x	15.3x
Regency Centers CorporationREG	14,703	20.9x	19.6x
Host Hotels & Resorts, Inc.HST	14,393	10.4x	11.3x
Omega Healthcare Investors, Inc.OHI	14,016	15.6x	17.3x
Lamar Advertising CompanyLAMR	13,698	18.0x	18.5x
Gaming and Leisure Properties, Inc.GLPI	13,600	14.0x	14.6x
AGNC Investment Corp.AGNC	12,445	24.0x	15.7x
Equity LifeStyle Properties, Inc.ELS	12,140	25.5x	24.8x
UDR, Inc.UDR	11,898	18.0x	17.9x
Camden Property TrustCPT	11,094	13.0x	13.1x
Industry Median		16.8x	16.5x
(*) EBITDA		1,203	1,118
= Enterprise Value		20,204	18,487
(-) Net Debt		5,017	5,017
Equity Value		15,187	13,470
(/) Outstanding shares		371	371
Fair Price		$41	$36

Selected Fair Value (avg of trailing + forward)

$38.63

+22.4%

Fair Value

$36.19

Market Price

$31.57

Upside / Downside

+14.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), American Homes 4 Rent (AMH) has a fair value of $36.19 based on 10 comparable companies in the REIT - Residential industry.

EV/Revenue Valuation — REIT - Residential

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
American Homes 4 RentAMH	11,710	9.0x	9.6x
Mid-America Apartment Communities, Inc.MAA	15,169	9.3x	9.1x
Regency Centers CorporationREG	14,703	13.2x	12.4x
Host Hotels & Resorts, Inc.HST	14,393	3.2x	3.4x
Omega Healthcare Investors, Inc.OHI	14,016	15.2x	16.9x
Lamar Advertising CompanyLAMR	13,698	8.7x	9.0x
Gaming and Leisure Properties, Inc.GLPI	13,600	13.3x	13.8x
AGNC Investment Corp.AGNC	12,445	58.8x	38.6x
Equity LifeStyle Properties, Inc.ELS	12,140	10.1x	9.8x
UDR, Inc.UDR	11,898	10.5x	10.5x
Camden Property TrustCPT	11,094	9.5x	9.6x
Industry Median		10.3x	10.2x
(*) Revenue		1,866	1,735
= Enterprise Value		19,266	17,617
(-) Net Debt		5,017	5,017
Equity Value		14,249	12,599
(/) Outstanding shares		371	371
Fair Price		$38	$34

Selected Fair Value (avg of trailing + forward)

$36.19

+14.6%

PEG Fair Value

Fair Value

$5.82

Market Price

$31.57

Upside / Downside

-81.6%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 4.0% dividend yield, the company has a fair value of $5.82 based on NTM EPS (FY2026) of $0.73.

PEG Ratio

PEG ratio unavailable — requires positive earnings and growth data.

Fair Value Calculation

EPS Growth RateForward	-14.3%
Dividend Yield	+4.0%
Adjusted Growth (clamped 8–25%)Clamped	8.0%
Fair P/E	8.0x
NTM EPS (FY2026)	$0.73
Fair Value	$5.82

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.18	—	—
FY2026E	$0.73	-38.4%	10
FY2027E	$0.73	+0.3%	8
FY2028E	$0.74	+2.0%	3

3Y Forward EPS CAGR: -14.3%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$189.1M	$0.41	—
FY2022	$273.1M	$0.71	+73.2%
FY2023	$380.2M	$1.01	+42.3%
FY2024	$412.4M	$1.08	+6.9%
FY2025	$453.0M	$1.18	+9.3%

4Y Historical EPS CAGR: 30.2%

Earnings Power Value

Fair Value

$17.01

Market Price

$31.57

Upside / Downside

-46.1%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 6.5% and normalized earnings of $737.8M, the company has a fair value of $17.01 per share. The EPV range is $11.29 – $26.15 based on WACC sensitivity (5.0% – 8.0%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	738	738	738
(/) WACC	8.0%	6.5%	5.0%
Enterprise Value	9,207	11,327	14,716
(-) Net debt	5,017	5,017	5,017
Equity Value	4,189	6,310	9,698
(/) Outstanding shares	371	371	371
Fair Price	$11.29	$17.01	$26.15

Dividend Discount Model

Fair Value

$34.00

Market Price

$31.57

Upside / Downside

+7.7%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.2% and projected dividend growth of 12.2%, the fair value is $34.00 per share. The DDM range is $22.89 – $57.98 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.24

Dividend Yield

4.03%

Payout Ratio

101.6%

Dividend Coverage

0.98x

FCF Payout Ratio61.7%

DPS CAGR (4Y)28.9%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.24	101.6%	+19.1%
2024	$1.04	93.0%	+18.2%
2023	$0.88	84.0%	+22.1%
2022	$0.72	92.4%	+60.7%
2021	$0.45	77.3%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.39	12.2%	0.9246	$1.29
2027	$1.56	12.2%	0.8549	$1.34
2028	$1.75	12.2%	0.7904	$1.39
2029	$1.97	12.2%	0.7308	$1.44
2030	$2.21	12.2%	0.6757	$1.49
Terminal Value	$2.26 DPS	2.5%		$27.06

PV of Projected Dividends$6.94

PV of Terminal Value$27.06

Fair Value per Share$34.00

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	10.2%	11.2%	12.2%	13.2%	14.2%
6.2%	$49	$51	$53	$56	$58
7.2%	$38	$40	$42	$43	$45
8.2%	$31	$33	$34	$35	$37
9.2%	$26	$28	$29	$30	$31
10.2%	$23	$24	$25	$26	$27

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

American Homes 4 Rent (AMH) Valuation Summary

Updated Apr 28, 2026 22:22

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$18.39 – $193.15	$40.51	+28.7%
Growth Exit 10Y	$24.79 – $226.79	$50.59	+60.7%
EBITDA Exit 5Y	$21.20 – $47.48	$33.26	+5.7%
EBITDA Exit 10Y	$26.96 – $63.32	$42.56	+35.2%
▸ Trading Multiples
P/E	$23.25 – $39.13	$29.07	-7.7%
EV/EBITDA	$31.95 – $54.34	$38.63	+22.7%
EV/Revenue	$33.20 – $53.25	$36.19	+15.0%
▸ PEG
PEG Fair Value	$5.82 – $5.82	$5.82	-81.5%
▸ Earnings Power Value
Earnings Power Value	$11.29 – $26.15	$17.01	-46.0%
▸ Dividend Discount
Dividend Discount	$22.89 – $57.98	$34.00	+8.0%

Valuation History

DCF Analysis

Fair Value

$40.51

Market Price

$31.57

Upside / Downside

+28.3%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	576	597	623	681	745	764
(−) Net Interest	175	181	189	207	226	232
(+) D&A	127	133	137	144	155	159
EBITDA	878	912	949	1,031	1,126	1,155

(−) Tax	0	0	0	0	0	0
(−) CapEx	153	159	166	181	198	203
(−) ΔWC	179	8	10	23	25	25
Free Cash Flow (FCFF)	546	745	773	828	904	926

Terminal Value						23,077
WACC / Discount Rate	6.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	529	677	661	664	680	16,833

Enterprise Value	20,043
Projection Period	3,210	16.0%
Terminal Value	16,833	84.0%

(−) Current Net Debt	5,017

Equity Value	15,026
(/) Outstanding Shares	371

Fair Price	$40.51

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.5%	$62	$75	$95	$128	$193
5.5%	$43	$50	$59	$71	$90
6.5%	$31	$35	$41	$47	$56
7.5%	$24	$26	$30	$33	$38
8.5%	$18	$20	$22	$25	$28

Current price: $31.57. Green = undervalued, Red = overvalued.

Fair Value

$50.59

Market Price

$31.57

Upside / Downside

+60.2%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	576	597	623	681	745	807	866	919	966	1,006	1,031
(−) Net Interest	175	181	189	207	226	245	262	279	293	305	312
(+) D&A	127	133	137	144	155	171	184	198	214	229	235
EBITDA	878	912	949	1,031	1,126	1,223	1,312	1,396	1,473	1,539	1,578

(−) Tax	0	0	0	0	0	0	0	0	0	0	0
(−) CapEx	153	159	166	181	198	215	230	245	257	267	274
(−) ΔWC	179	8	10	23	25	24	23	21	18	15	16
Free Cash Flow (FCFF)	546	745	773	828	904	985	1,059	1,131	1,198	1,257	1,288

Terminal Value											32,094
WACC / Discount Rate	6.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	529	677	661	664	680	696	703	704	701	690	17,076

Enterprise Value	23,780
Projection Period	6,704	28.2%
Terminal Value	17,076	71.8%

(−) Current Net Debt	5,017

Equity Value	18,762
(/) Outstanding Shares	371

Fair Price	$50.59

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.5%	$81	$95	$117	$154	$227
5.5%	$56	$63	$73	$86	$106
6.5%	$41	$45	$51	$57	$66
7.5%	$32	$34	$37	$41	$46
8.5%	$25	$26	$28	$31	$34

Current price: $31.57. Green = undervalued, Red = overvalued.

Fair Value

$33.27

Market Price

$31.57

Upside / Downside

+5.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Homes 4 Rent's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.8% to 9.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 12, DPO 5, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $33.26 per share, suggesting AMH is fairly valued by 5.4% at the current price of $31.57.

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

EV/EBITDA Exit Multiple

16.80x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	576	597	623	681	745	764
(−) Net Interest	175	181	189	207	226	232
(+) D&A	127	133	137	144	155	159
EBITDA	878	912	949	1,031	1,126	1,155

(−) Tax	0	0	0	0	0	—
(−) CapEx	153	159	166	181	198	—
(−) ΔWC	179	8	10	23	25	—
Free Cash Flow (FCF)	546	745	773	828	904	—

Peers' EBITDA Multiple						16.8x
Terminal Value						19,397
WACC / Discount Rate	6.51%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	529	677	661	664	680	14,149

Enterprise Value	17,359
Projection Period	3,210	18.5%
Terminal Value	14,149	81.5%

(−) Current Net Debt	5,017
Equity Value	12,342
(÷) Outstanding Shares	371M
Fair Price	$33	+5.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.8x	14.8x	16.8x	18.8x	20.8x
4.5%	$28	$33	$37	$42	$47
5.5%	$26	$31	$35	$40	$45
6.5%	$24	$29	$33	$38	$42
7.5%	$23	$27	$31	$36	$40
8.5%	$21	$25	$29	$34	$38

Current price: $31.57. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$42.57

Market Price

$31.57

Upside / Downside

+34.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Homes 4 Rent's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.8% to 4.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 12, DPO 5, DIO 60). At a 6.5% WACC with mid-year discounting, the terminal value (68% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $42.56 per share, suggesting AMH is undervalued by 34.8% at the current price of $31.57.

FCFF Present Value Calculation

WACC

6.51%

3% – 20%

EV/EBITDA Exit Multiple

16.80x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	576	597	623	681	745	807	866	919	966	1,006	1,031
(−) Net Interest	175	181	189	207	226	245	262	279	293	305	312
(+) D&A	127	133	137	144	155	171	184	198	214	229	235
EBITDA	878	912	949	1,031	1,126	1,223	1,312	1,396	1,473	1,539	1,578

(−) Tax	0	0	0	0	0	0	0	0	0	0	—
(−) CapEx	153	159	166	181	198	215	230	245	257	267	—
(−) ΔWC	179	8	10	23	25	24	23	21	18	15	—
Free Cash Flow (FCF)	546	745	773	828	904	985	1,059	1,131	1,198	1,257	—

Peers' EBITDA Multiple											16.8x
Terminal Value											26,507
WACC / Discount Rate	6.51%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	529	677	661	664	680	696	703	704	701	690	14,103

Enterprise Value	20,807
Projection Period	6,704	32.2%
Terminal Value	14,103	67.8%

(−) Current Net Debt	5,017
Equity Value	15,790
(÷) Outstanding Shares	371M
Fair Price	$43	+34.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.8x	14.8x	16.8x	18.8x	20.8x
4.5%	$41	$47	$52	$58	$63
5.5%	$37	$42	$47	$52	$57
6.5%	$34	$38	$43	$47	$52
7.5%	$30	$34	$38	$42	$47
8.5%	$27	$31	$34	$38	$42

Current price: $31.57. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$29.07

Market Price

$31.57

Upside / Downside

-7.9%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), American Homes 4 Rent (AMH) has a fair value of $29.07 based on 10 comparable companies in the REIT - Residential industry.

P/E Valuation — REIT - Residential

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
American Homes 4 RentAMH	11,710	26.8x	35.4x
Mid-America Apartment Communities, Inc.MAA	15,169	34.5x	39.0x
Regency Centers CorporationREG	14,703	28.5x	33.4x
Host Hotels & Resorts, Inc.HST	14,393	19.0x	21.7x
Omega Healthcare Investors, Inc.OHI	14,016	24.4x	24.1x
Lamar Advertising CompanyLAMR	13,698	23.4x	27.1x
Gaming and Leisure Properties, Inc.GLPI	13,600	16.3x	17.1x
AGNC Investment Corp.AGNC	12,445	7.5x	5.7x
Equity LifeStyle Properties, Inc.ELS	12,140	32.4x	30.8x
UDR, Inc.UDR	11,898	32.0x	74.2x
Camden Property TrustCPT	11,094	29.9x	69.5x
Industry Median		26.5x	28.9x
(*) Profit after tax		453	331
Equity Value		11,986	9,577
(/) Outstanding shares		371	371
Fair Price		$32	$26

Selected Fair Value (avg of trailing + forward)

$29.07

-7.9%

Fair Value

$38.63

Market Price

$31.57

Upside / Downside

+22.4%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), American Homes 4 Rent (AMH) has a fair value of $38.63 based on 10 comparable companies in the REIT - Residential industry.

EV/EBITDA Valuation — REIT - Residential

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
American Homes 4 RentAMH	11,710	13.9x	15.0x
Mid-America Apartment Communities, Inc.MAA	15,169	15.6x	15.3x
Regency Centers CorporationREG	14,703	20.9x	19.6x
Host Hotels & Resorts, Inc.HST	14,393	10.4x	11.3x
Omega Healthcare Investors, Inc.OHI	14,016	15.6x	17.3x
Lamar Advertising CompanyLAMR	13,698	18.0x	18.5x
Gaming and Leisure Properties, Inc.GLPI	13,600	14.0x	14.6x
AGNC Investment Corp.AGNC	12,445	24.0x	15.7x
Equity LifeStyle Properties, Inc.ELS	12,140	25.5x	24.8x
UDR, Inc.UDR	11,898	18.0x	17.9x
Camden Property TrustCPT	11,094	13.0x	13.1x
Industry Median		16.8x	16.5x
(*) EBITDA		1,203	1,118
= Enterprise Value		20,204	18,487
(-) Net Debt		5,017	5,017
Equity Value		15,187	13,470
(/) Outstanding shares		371	371
Fair Price		$41	$36

Selected Fair Value (avg of trailing + forward)

$38.63

+22.4%

Fair Value

$36.19

Market Price

$31.57

Upside / Downside

+14.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), American Homes 4 Rent (AMH) has a fair value of $36.19 based on 10 comparable companies in the REIT - Residential industry.

EV/Revenue Valuation — REIT - Residential

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
American Homes 4 RentAMH	11,710	9.0x	9.6x
Mid-America Apartment Communities, Inc.MAA	15,169	9.3x	9.1x
Regency Centers CorporationREG	14,703	13.2x	12.4x
Host Hotels & Resorts, Inc.HST	14,393	3.2x	3.4x
Omega Healthcare Investors, Inc.OHI	14,016	15.2x	16.9x
Lamar Advertising CompanyLAMR	13,698	8.7x	9.0x
Gaming and Leisure Properties, Inc.GLPI	13,600	13.3x	13.8x
AGNC Investment Corp.AGNC	12,445	58.8x	38.6x
Equity LifeStyle Properties, Inc.ELS	12,140	10.1x	9.8x
UDR, Inc.UDR	11,898	10.5x	10.5x
Camden Property TrustCPT	11,094	9.5x	9.6x
Industry Median		10.3x	10.2x
(*) Revenue		1,866	1,735
= Enterprise Value		19,266	17,617
(-) Net Debt		5,017	5,017
Equity Value		14,249	12,599
(/) Outstanding shares		371	371
Fair Price		$38	$34

Selected Fair Value (avg of trailing + forward)

$36.19

+14.6%

PEG Fair Value

Fair Value

$5.82

Market Price

$31.57

Upside / Downside

-81.6%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 4.0% dividend yield, the company has a fair value of $5.82 based on NTM EPS (FY2026) of $0.73.

PEG Ratio

PEG ratio unavailable — requires positive earnings and growth data.

Fair Value Calculation

EPS Growth RateForward	-14.3%
Dividend Yield	+4.0%
Adjusted Growth (clamped 8–25%)Clamped	8.0%
Fair P/E	8.0x
NTM EPS (FY2026)	$0.73
Fair Value	$5.82

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.18	—	—
FY2026E	$0.73	-38.4%	10
FY2027E	$0.73	+0.3%	8
FY2028E	$0.74	+2.0%	3

3Y Forward EPS CAGR: -14.3%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$189.1M	$0.41	—
FY2022	$273.1M	$0.71	+73.2%
FY2023	$380.2M	$1.01	+42.3%
FY2024	$412.4M	$1.08	+6.9%
FY2025	$453.0M	$1.18	+9.3%

4Y Historical EPS CAGR: 30.2%

Earnings Power Value

Fair Value

$17.01

Market Price

$31.57

Upside / Downside

-46.1%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	738	738	738
(/) WACC	8.0%	6.5%	5.0%
Enterprise Value	9,207	11,327	14,716
(-) Net debt	5,017	5,017	5,017
Equity Value	4,189	6,310	9,698
(/) Outstanding shares	371	371	371
Fair Price	$11.29	$17.01	$26.15

Dividend Discount Model

Fair Value

$34.00

Market Price

$31.57

Upside / Downside

+7.7%

Verdict

Undervalued

Dividend Profile

Current DPS

$1.24

Dividend Yield

4.03%

Payout Ratio

101.6%

Dividend Coverage

0.98x

FCF Payout Ratio61.7%

DPS CAGR (4Y)28.9%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.24	101.6%	+19.1%
2024	$1.04	93.0%	+18.2%
2023	$0.88	84.0%	+22.1%
2022	$0.72	92.4%	+60.7%
2021	$0.45	77.3%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.39	12.2%	0.9246	$1.29
2027	$1.56	12.2%	0.8549	$1.34
2028	$1.75	12.2%	0.7904	$1.39
2029	$1.97	12.2%	0.7308	$1.44
2030	$2.21	12.2%	0.6757	$1.49
Terminal Value	$2.26 DPS	2.5%		$27.06

PV of Projected Dividends$6.94

PV of Terminal Value$27.06

Fair Value per Share$34.00

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	10.2%	11.2%	12.2%	13.2%	14.2%
6.2%	$49	$51	$53	$56	$58
7.2%	$38	$40	$42	$43	$45
8.2%	$31	$33	$34	$35	$37
9.2%	$26	$28	$29	$30	$31
10.2%	$23	$24	$25	$26	$27