Latest Ratios: P/E Ratio 4.2x · EV/EBITDA 4.0x · ROE 14.4%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $832M | $1.7B | $2.3B | $3.8B | $924M | $1.8B | — | — | — |
| Enterprise Value | $1.2B | $2.1B | $3.4B | $4.1B | $1.6B | $2.4B | — | — | — |
| P/E Ratio → | 4.21 | 7.99 | 7.25 | 13.36 | 3.73 | 15.31 | — | — | — |
| P/S Ratio | 0.19 | 0.40 | 0.52 | 1.00 | 0.28 | 0.94 | — | — | — |
| P/B Ratio | 0.57 | 1.08 | 1.64 | 3.47 | 1.15 | 3.23 | — | — | — |
| P/FCF | — | — | — | 10.20 | — | 28.93 | — | — | — |
| P/OCF | — | — | — | 10.07 | — | 27.70 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.48 | 0.76 | 1.10 | 0.46 | 1.23 | — | — | — |
| EV / EBITDA | 3.98 | 6.99 | 7.47 | 9.24 | 4.23 | 13.95 | — | — | — |
| EV / EBIT | 4.41 | 7.35 | 7.68 | 10.18 | 4.35 | 14.50 | — | — | — |
| EV / FCF | — | — | — | 11.15 | — | 37.92 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.5% | 17.5% | 18.6% | 19.7% | 18.6% | 16.3% | 15.1% | 13.5% | 13.0% |
| Operating Margin | 6.2% | 6.2% | 9.7% | 11.4% | 10.4% | 8.3% | 7.1% | 5.0% | 4.7% |
| Net Profit Margin | 5.0% | 5.0% | 7.5% | 7.9% | 7.8% | 6.4% | 7.0% | 3.2% | 3.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.4% | 14.4% | 26.8% | 31.4% | 38.7% | 31.9% | 52.9% | 41.6% | 27.9% |
| ROA | 6.2% | 6.2% | 11.4% | 12.0% | 12.3% | 9.3% | 12.7% | 7.0% | 4.6% |
| ROIC | 9.2% | 9.2% | 16.7% | 22.4% | 20.6% | 14.8% | 15.1% | 14.1% | — |
| ROCE | 11.4% | 11.4% | 26.1% | 34.8% | 42.6% | 32.5% | 33.6% | 31.0% | 20.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.37 | 0.37 | 0.92 | 0.78 | 1.24 | 1.41 | 1.58 | 2.85 | 3.10 |
| Debt / EBITDA | 1.98 | 1.98 | 2.90 | 1.90 | 2.71 | 4.65 | 3.60 | 3.97 | 6.76 |
| Net Debt / Equity | — | 0.22 | 0.73 | 0.32 | 0.78 | 1.01 | 1.37 | 2.34 | 2.78 |
| Net Debt / EBITDA | 1.19 | 1.19 | 2.29 | 0.79 | 1.71 | 3.31 | 3.13 | 3.27 | 6.06 |
| Debt / FCF | — | — | — | 0.95 | — | 8.99 | 3.14 | 9.72 | — |
| Interest Coverage | — | — | — | 404426.00 | 11130.88 | 242.14 | 98.05 | 219.07 | 35.10 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.92 | 2.92 | 1.57 | 1.93 | 1.27 | 1.16 | 1.31 | 1.36 | 1.29 |
| Quick Ratio | 0.35 | 0.35 | 0.44 | 0.55 | 0.31 | 0.26 | 0.24 | 0.22 | 0.14 |
| Cash Ratio | 0.30 | 0.30 | 0.18 | 0.47 | 0.25 | 0.19 | 0.10 | 0.14 | 0.08 |
| Asset Turnover | — | 1.16 | 1.34 | 1.46 | 1.41 | 1.02 | 1.55 | 1.90 | 1.39 |
| Inventory Turnover | 1.76 | 1.76 | 2.11 | 2.09 | 1.98 | 1.51 | 1.99 | 2.32 | 1.55 |
| Days Sales Outstanding | — | 3.30 | 2.80 | 3.01 | 4.75 | 6.35 | 5.40 | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.5% | 0.8% | 0.6% | 0.4% | 1.5% | 1.3% | — | — | — |
| Payout Ratio | — | — | — | — | — | 19.0% | — | 26.8% | 67.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 23.7% | 12.5% | 13.8% | 7.5% | 26.8% | 6.5% | — | — | — |
| FCF Yield | — | — | — | 9.8% | — | 3.5% | — | — | — |
| Buyback Yield | 6.0% | 2.9% | 0.9% | 0.0% | 0.0% | 1.4% | — | — | — |
| Total Shareholder Yield | 7.4% | 3.6% | 1.4% | 0.4% | 1.5% | 2.7% | — | — | — |
| Shares Outstanding | — | $101M | $100M | $106M | $107M | $93M | $93M | $93M | $93M |
Includes 30+ ratios · 8 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DFH stock.
Dream Finders Homes, Inc.'s current P/E ratio is 4.2x. The historical average is 9.5x. This places it at the 20th percentile of its historical range.
Dream Finders Homes, Inc.'s current EV/EBITDA is 4.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.4x.
Dream Finders Homes, Inc.'s return on equity (ROE) is 14.4%. The historical average is 33.2%.
Based on historical data, Dream Finders Homes, Inc. is trading at a P/E of 4.2x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dream Finders Homes, Inc.'s current dividend yield is 1.48%.
Dream Finders Homes, Inc. has 17.5% gross margin and 6.2% operating margin.
Dream Finders Homes, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Off-balance-sheet land commitments
Metrics are mathematically derived from official filings.
Margin Compression Undermines Model
Gross margin collapsed to 7.7% in Q2 2026 from 18.1% a year earlier, per recent SEC filings, while operating margin turned negative at -4.5%, signaling severe cost and pricing pressures.
The sequential deterioration from 14.6% gross margin in Q1 2026 to 7.7% in Q2 2026 suggests an acute spike in land option costs or incentive spending, likely tied to the entry-level focus. Net margin of 2.6% in Q2 2026 appears artificially supported by non-operating items, as operating income was a loss, indicating that core homebuilding profitability is weaker than the bottom line suggests. Investors should monitor whether this is a temporary trough or a structural shift in the land-light model's economics.
Return on Capital Decays Sharply
ROIC fell to -1.4% in Q2 2026 from 5.0% in Q4 2024, as reported in financial statements, while ROE dropped to 1.7% from 9.5%, indicating a significant erosion in capital efficiency.
The decline in ROIC is driven by both margin compression and a slowdown in asset turnover, which fell to 0.27x from 0.47x over the same period. This suggests that the capital deployed in acquisitions and land options is not generating commensurate returns in the current demand environment. The negative ROIC in Q2 2026 implies that the company is destroying value on its invested capital, a stark contrast to the positive returns seen in 2024, and warrants close monitoring of whether this is cyclical or a permanent impairment of the model.
Working Capital Cycle Stretches
Cash conversion cycle ballooned to 197 days in Q2 2026 from 126 days in Q4 2024, per the data, driven by a surge in days inventory outstanding to 207 days, indicating slower inventory turnover.
The increase in DIO from 136 days to 207 days suggests that homes are taking longer to sell or that land option deposits are accumulating without corresponding revenue, tying up cash. DSO remains low at 3 days, reflecting the transactional nature of home sales, but the extended inventory cycle is absorbing liquidity. This inefficiency is a key driver of the negative free cash flow margins observed in recent quarters, as working capital demands outpace operating cash generation.
Leverage Spikes Then Retreats
Debt-to-equity swung from 0.37 in Q2 2026 to 1.18 in Q1 2026, as per balance sheet data, while D/EBITDA reached 68.18x in Q1 2026, indicating a temporary surge in borrowings that was quickly repaid.
The spike in leverage in Q1 2026 appears tied to acquisition financing, but the rapid repayment by Q2 2026 suggests management is using debt opportunistically rather than carrying a permanent burden. However, the reported D/E of 0.37 understates total financial leverage, as land option commitments are off-balance-sheet, potentially masking the true risk. Interest coverage data is unavailable, but the thin operating margins in Q2 2026 suggest that debt service could become uncomfortable if rates remain high and margins stay compressed.
Liquidity Cushion Masks Inventory Risk
Current ratio improved to 3.04 in Q2 2026 from 1.78 in Q1 2024, per financial statements, but quick ratio fell to 0.28, indicating heavy reliance on inventory to meet short-term obligations.
The high current ratio is driven by a large inventory balance, which may not be easily convertible to cash in a downturn, as evidenced by the quick ratio of 0.28. This suggests that the liquidity position is less robust than the current ratio implies, especially if home sales slow further. The cash balance of $234.7 million provides some buffer, but the negative free cash flow in recent quarters indicates that internal cash generation is insufficient to cover working capital needs, potentially forcing reliance on external financing.
Misapplied Debt-to-Equity Ratio
The reported debt-to-equity ratio of 0.37 understates true leverage, as land option commitments are off-balance-sheet, per industry practice, potentially masking the company's actual financial risk.
Investors often use D/E to assess financial risk, but for a land-light builder like DFH, this metric ignores the substantial obligations tied to lot options and pre-acquisition costs. A more appropriate measure would be total capital commitments, including off-balance-sheet land contracts, or a leverage ratio based on total debt plus capitalized operating leases. The low D/E may give a false sense of safety, especially when the company's cash flow is volatile and its inventory cycle is lengthening. Analysts should adjust for these off-balance-sheet items to get a true picture of DFH's financial leverage.