Using the PEG framework with analyst consensus forward EPS growth of 8.9% plus 1.2% dividend yield, D.R. Horton, Inc. has a fair value of $93.06 based on NTM EPS (FY2026) of $10.49. The current PEG ratio is 1.47.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 7.6% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%) | 8.9% |
| Fair P/E | 8.9x |
| NTM EPS (FY2026) | $10.49 |
| Fair Value | $93.06 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $11.57 | — | — |
| FY2026E | $10.49 | -9.3% | 14 |
| FY2027E | $12.22 | +16.5% | 14 |
| FY2028E | $14.43 | +18.0% | 6 |
3Y Forward EPS CAGR: 7.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $4.2B | $11.42 | — |
| FY2022 | $5.9B | $16.51 | +44.6% |
| FY2023 | $4.7B | $13.82 | -16.3% |
| FY2024 | $4.8B | $14.34 | +3.8% |
| FY2025 | $3.6B | $11.57 | -19.3% |
4Y Historical EPS CAGR: 0.3%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.