Latest Ratios: P/E Ratio 12.1x · EV/EBITDA 9.3x · ROE 14.2%. (1996–2025 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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $39.2B | $52.5B | $63.3B | $36.9B | $23.9B | $30.7B | $28.0B | $19.9B | $16.2B | $15.1B | $11.3B |
| Enterprise Value | $42.3B | $55.6B | $64.7B | $38.2B | $27.5B | $33.0B | $29.3B | $21.8B | $17.9B | $17.0B | $13.3B |
| P/E Ratio → | 12.12 | 14.65 | 13.30 | 7.78 | 4.08 | 7.35 | 11.80 | 12.29 | 11.07 | 14.57 | 12.80 |
| P/S Ratio | 1.14 | 1.53 | 1.72 | 1.04 | 0.71 | 1.11 | 1.38 | 1.13 | 1.01 | 1.07 | 0.93 |
| P/B Ratio | 1.76 | 2.12 | 2.45 | 1.59 | 1.21 | 2.02 | 2.31 | 1.93 | 1.77 | 1.95 | 1.67 |
| P/FCF | 11.94 | 15.99 | 31.25 | 8.88 | 57.78 | 115.04 | 24.67 | 29.78 | 33.90 | 54.46 | 21.30 |
| P/OCF | 11.46 | 15.35 | 28.89 | 8.57 | 42.53 | 57.48 | 19.69 | 22.30 | 29.66 | 34.77 | 18.33 |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.62 | 1.76 | 1.08 | 0.82 | 1.19 | 1.44 | 1.24 | 1.11 | 1.21 | 1.09 |
| EV / EBITDA | 9.34 | 12.28 | 10.44 | 6.03 | 3.53 | 6.03 | 9.65 | 10.25 | 8.51 | 9.88 | 9.20 |
| EV / EBIT | 9.55 | 11.72 | 10.30 | 6.04 | 3.60 | 6.15 | 9.82 | 10.26 | 8.69 | 10.61 | 9.82 |
| EV / FCF | — | 16.92 | 31.97 | 9.18 | 66.42 | 123.43 | 25.82 | 32.63 | 37.52 | 61.17 | 25.00 |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.7% | 23.7% | 25.9% | 26.4% | 31.4% | 28.4% | 24.3% | 22.0% | 22.8% | 21.6% | 21.8% |
| Operating Margin | 12.9% | 12.9% | 16.6% | 17.6% | 23.0% | 19.4% | 14.5% | 11.7% | 12.7% | 11.8% | 11.4% |
| Net Profit Margin | 10.5% | 10.5% | 12.9% | 13.4% | 17.5% | 15.0% | 11.7% | 9.2% | 9.1% | 7.4% | 7.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 19.4% | 22.1% | 33.5% | 30.5% | 21.2% | 16.6% | 17.3% | 14.3% | 14.0% |
| ROA | 10.0% | 10.0% | 13.8% | 15.1% | 21.5% | 19.5% | 13.8% | 10.9% | 11.1% | 8.7% | 7.8% |
| ROIC | 12.1% | 12.1% | 17.7% | 19.6% | 28.3% | 26.2% | 17.3% | 13.3% | 14.9% | 13.6% | 12.2% |
| ROCE | 13.1% | 13.1% | 18.9% | 21.3% | 30.6% | 27.0% | 18.2% | 14.7% | 16.5% | 14.9% | 13.0% |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.24 | 0.24 | 0.23 | 0.22 | 0.31 | 0.36 | 0.36 | 0.33 | 0.35 | 0.37 | 0.48 |
| Debt / EBITDA | 1.33 | 1.33 | 0.96 | 0.81 | 0.78 | 1.00 | 1.42 | 1.60 | 1.52 | 1.67 | 2.26 |
| Net Debt / Equity | — | 0.12 | 0.06 | 0.05 | 0.18 | 0.15 | 0.11 | 0.19 | 0.19 | 0.24 | 0.29 |
| Net Debt / EBITDA | 0.67 | 0.67 | 0.23 | 0.20 | 0.46 | 0.41 | 0.43 | 0.90 | 0.82 | 1.08 | 1.36 |
| Debt / FCF | — | 0.93 | 0.72 | 0.31 | 8.64 | 8.39 | 1.15 | 2.85 | 3.63 | 6.71 | 3.70 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 17.39 | 17.39 | 17.06 | 14.96 | 13.13 | 12.87 | 14.71 | 17.23 | 15.64 | 15.65 | 15.41 |
| Quick Ratio | 4.51 | 4.51 | 4.83 | 4.22 | 3.26 | 3.73 | 4.60 | 4.00 | 3.43 | 2.89 | 3.34 |
| Cash Ratio | 1.52 | 1.52 | 2.22 | 1.86 | 1.16 | 1.78 | 2.50 | 1.75 | 1.73 | 1.39 | 1.89 |
| Asset Turnover | — | 0.97 | 1.02 | 1.09 | 1.10 | 1.16 | 1.07 | 1.13 | 1.14 | 1.16 | 1.05 |
| Inventory Turnover | 1.03 | 1.03 | 1.09 | 1.17 | 1.06 | 1.21 | 1.26 | 1.22 | 1.19 | 1.20 | 1.14 |
| Days Sales Outstanding | — | 4.89 | 4.18 | 4.39 | 4.61 | 4.23 | 4.88 | 4.52 | 3.10 | 3.48 | 6.60 |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 0.9% | 0.6% | 0.9% | 1.3% | 0.9% | 0.9% | 1.1% | 1.2% | 1.0% | 1.0% |
| Payout Ratio | 13.8% | 13.8% | 8.3% | 7.2% | 5.4% | 6.9% | 10.8% | 13.8% | 12.9% | 14.4% | 13.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.3% | 6.8% | 7.5% | 12.9% | 24.5% | 13.6% | 8.5% | 8.1% | 9.0% | 6.9% | 7.8% |
| FCF Yield | 8.4% | 6.3% | 3.2% | 11.3% | 1.7% | 0.9% | 4.1% | 3.4% | 3.0% | 1.8% | 4.7% |
| Buyback Yield | 10.9% | 8.2% | 2.8% | 3.3% | 5.0% | 3.0% | 1.4% | 2.5% | 0.9% | 0.4% | 0.1% |
| Total Shareholder Yield | 12.1% | 9.1% | 3.5% | 4.3% | 6.3% | 4.0% | 2.3% | 3.6% | 2.0% | 1.4% | 1.1% |
| Shares Outstanding | — | $310M | $332M | $343M | $355M | $366M | $370M | $377M | $383M | $379M | $375M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DHI stock.
D.R. Horton, Inc.'s current P/E ratio is 12.1x. The historical average is 11.4x. This places it at the 56th percentile of its historical range.
D.R. Horton, Inc.'s current EV/EBITDA is 9.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.5x.
D.R. Horton, Inc.'s return on equity (ROE) is 14.2%. The historical average is 15.5%.
Based on historical data, D.R. Horton, Inc. is trading at a P/E of 12.1x. This is at the 56th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
D.R. Horton, Inc.'s current dividend yield is 1.14% with a payout ratio of 13.8%.
D.R. Horton, Inc. has 23.7% gross margin and 12.9% operating margin. Operating margin between 10-20% is typical for established companies.
D.R. Horton, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Incentive-driven margin compression
Metrics are mathematically derived from official filings.
Margin Erosion Reflects Incentive Strategy
Gross margin fell from 26.5% in Q3 2024 to 23.3% in Q3 2026, a 320 basis point decline, as DHI appears to prioritize volume through rate buy-downs, per reported financials.
The sequential improvement from 22.5% in Q2 2026 to 23.3% in Q3 2026 suggests some stabilization, but the year-over-year trend remains negative. Operating margin compression from 17.7% to 13.3% over the same period indicates that SG&A leverage is fading, with overhead not scaling down proportionally with revenue. This margin profile implies that DHI's cost-leader moat is being tested by affordability constraints, and investors should monitor whether incentive costs become structurally embedded.
Return on Capital Decelerating from Peak
ROIC declined from 4.8% in Q3 2024 to 3.1% in Q3 2026, per quarterly data, reflecting margin compression and a growing capital base, suggesting diminishing efficiency in capital deployment.
The decline in ROIC is driven primarily by falling net margins rather than asset turnover, which has remained relatively stable around 0.26. The increase in total assets from $34.4B to $36.5B while equity stayed flat indicates that debt-funded inventory growth is not generating proportional returns. This suggests that DHI's land-light strategy may be becoming less effective as land costs rise, and the company may need to improve inventory turns to reverse the ROIC trend.
Inventory Days Signal Slower Turnover
DIO rose from 312 days in Q4 2024 to 341 days in Q3 2026, per reported figures, indicating that homes are taking longer to sell, which may pressure working capital efficiency.
The cash conversion cycle extended from 298 days to 327 days over the same period, driven by higher inventory days while DSO and DPO remained relatively stable. This suggests that DHI is holding land and homes longer, potentially due to slower absorption rates in the entry-level segment. The extended cycle implies that DHI's high-velocity production model is facing headwinds, and investors should watch whether inventory turns improve as mortgage rates stabilize.
Leverage Creeps Higher but Remains Manageable
Debt-to-equity rose from 0.20 in Q1 2025 to 0.29 in Q3 2026, while D/EBITDA increased from 4.88 to 5.72, per balance sheet data, indicating a gradual increase in financial risk.
Despite the increase, DHI's leverage remains low relative to peers like Lennar (0.29) and Toll Brothers (0.35), and interest coverage of 12.21 in Q2 2026 suggests comfortable debt service. However, the rising D/EBITDA trend warrants monitoring, especially if EBITDA contracts further due to margin pressure. The company's $2.98B cash position provides a buffer, but the cash drawdown from $3.0B to $2.1B over the last year suggests that liquidity is being used to support operations and incentives.
Liquidity Ample but Cash Buffer Thinning
Current ratio improved to 9.84 in Q3 2026 from 9.84 in Q2 2026, but cash fell from $3.0B to $2.1B over the last year, per reported data, signaling a tightening cash buffer.
The current ratio remains exceptionally high, indicating that DHI has more than sufficient short-term assets to cover liabilities, even under stress. However, the declining cash position suggests that the company is deploying cash into inventory and incentives, which may reduce its ability to weather a prolonged downturn. The quick ratio of 2.37 in Q3 2026, down from 4.51 in Q4 2025, indicates that inventory is becoming a larger component of current assets, which could be problematic if home prices decline.
Misapplied Metric: Inventory Turnover
Inventory turnover is commonly used to gauge DHI's operational efficiency, but it obscures the impact of land options and capitalized interest, which may understate true capital intensity, per accounting treatments.
DHI's reported inventory turnover appears strong due to its land-light strategy, but this metric fails to capture the full cost of land acquisition, as option deposits and capitalized interest are not fully reflected. A more accurate measure would be return on invested capital adjusted for off-balance-sheet land obligations, which would likely show lower efficiency than reported. Investors should adjust for these items when comparing DHI to peers like NVR, which has a truly asset-light model, to avoid overstating DHI's operational advantage.