Using the industry peer median P/E multiple (trailing + forward), D.R. Horton, Inc. (DHI) has a fair value of $183.14 based on 7 comparable companies in the Residential Construction industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| D.R. Horton, Inc.DHI | 42,534 | 11.9x | 9.4x |
| Chipotle Mexican Grill, Inc.CMG | 42,703 | 28.3x | 28.3x |
| Las Vegas Sands Corp.LVS | 35,355 | 22.3x | 22.5x |
| Carnival Corporation & plcCCL | 35,155 | 12.6x | 10.3x |
| Copart, Inc.CPRT | 32,075 | 20.8x | 23.0x |
| Lennar CorporationLEN | 23,011 | 11.4x | 6.6x |
| PulteGroup, Inc.PHM | 22,574 | 10.6x | 8.7x |
| NVR, Inc.NVR | 18,276 | 15.0x | 13.2x |
| Industry Median | 15.0x | 13.2x | |
| (*) Profit after tax | 3,585 | 4,538 | |
| Equity Value | 53,725 | 59,783 | |
| (/) Outstanding shares | 310 | 310 | |
| Fair Price | $173 | $193 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.