Latest Ratios: P/E Ratio 13.6x · EV/EBITDA 10.5x · 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 | $44.5B | $52.5B | $63.3B | $36.9B | $23.9B | $30.7B | $28.0B | $19.9B | $16.2B | $15.1B | $11.3B |
| Enterprise Value | $47.5B | $55.6B | $64.7B | $38.2B | $27.5B | $33.0B | $29.3B | $21.8B | $17.9B | $17.0B | $13.3B |
| P/E Ratio → | 13.56 | 14.65 | 13.30 | 7.78 | 4.08 | 7.35 | 11.80 | 12.29 | 11.07 | 14.57 | 12.80 |
| P/S Ratio | 1.30 | 1.53 | 1.72 | 1.04 | 0.71 | 1.11 | 1.38 | 1.13 | 1.01 | 1.07 | 0.93 |
| P/B Ratio | 1.96 | 2.12 | 2.45 | 1.59 | 1.21 | 2.02 | 2.31 | 1.93 | 1.77 | 1.95 | 1.67 |
| P/FCF | 13.55 | 15.99 | 31.25 | 8.88 | 57.78 | 115.04 | 24.67 | 29.78 | 33.90 | 54.46 | 21.30 |
| P/OCF | 13.00 | 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 | 10.50 | 12.28 | 10.44 | 6.03 | 3.53 | 6.03 | 9.65 | 10.25 | 8.51 | 9.88 | 9.20 |
| EV / EBIT | 10.74 | 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 | 1.0% | 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 | 7.4% | 6.8% | 7.5% | 12.9% | 24.5% | 13.6% | 8.5% | 8.1% | 9.0% | 6.9% | 7.8% |
| FCF Yield | 7.4% | 6.3% | 3.2% | 11.3% | 1.7% | 0.9% | 4.1% | 3.4% | 3.0% | 1.8% | 4.7% |
| Buyback Yield | 9.6% | 8.2% | 2.8% | 3.3% | 5.0% | 3.0% | 1.4% | 2.5% | 0.9% | 0.4% | 0.1% |
| Total Shareholder Yield | 10.6% | 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 |
Cyclical housing demand volatility
Based on current market data, DHI trades at a forward P/E of 15.73, which appears to price in a cautious outlook for future earnings growth compared to its historical averages and the broader residential construction peer group, suggesting investors are discounting the sustainability of current margin levels.
The forward P/E multiple exceeding the trailing P/E of 14.37 indicates that the market anticipates a contraction in near-term profitability. This valuation premium relative to peers like Lennar suggests that the market still assigns value to DHI's fortress balance sheet, even as growth signals turn negative.
As reported in recent financial statements, DHI's ROIC has compressed to 2.1% in 2026Q2, a significant decline from the 4.8% observed in 2024Q3, indicating that the company is struggling to maintain historical compounding efficiency amidst rising incentive costs and a cooling housing market environment.
The sharp decay in ROIC suggests that the capital deployed into land and construction is yielding lower returns as the company sacrifices pricing power to maintain volume. Investors should monitor whether this trend represents a structural shift in capital productivity or a temporary byproduct of the current interest rate cycle.
According to the latest quarterly data, DHI's days inventory outstanding has climbed to 399 days in 2026Q2, up from 312 days in 2024Q4, reflecting a notable slowdown in the velocity at which the company converts its land and work-in-progress into closed home sales.
This lengthening of the cash conversion cycle implies that capital is becoming trapped in inventory for longer periods, which directly pressures free cash flow. The inability to maintain historical turnover rates suggests that the company's high-volume model is encountering significant friction in the current demand environment.
Based on reported figures, DHI maintains a conservative debt-to-equity ratio of 0.27 as of 2026Q2, which remains a standout feature of its financial profile and provides a critical buffer against the volatility currently impacting the broader residential construction sector's profitability and cash flow generation.
This low leverage profile allows the company to absorb cyclical shocks that might otherwise force competitors to halt production or liquidate assets at distressed prices. While the interest coverage ratio of 12.21 remains healthy, the trend warrants monitoring as operating margins continue to face downward pressure.
The P/E ratio is frequently misapplied to DHI, as it fails to account for the lumpy nature of land development and the significant impact of mortgage rate buy-downs, which can artificially depress earnings and obscure the underlying cash-generating potential of the company's core homebuilding operations.
Analysts should instead focus on EV/EBITDA or price-to-book metrics, which better capture the capital-intensive nature of the land pipeline and the company's asset-light strategic pivots. Relying solely on P/E risks misinterpreting the company's cyclical trough as a permanent decline in earning power.
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 13.6x. The historical average is 11.4x. This places it at the 70th percentile of its historical range.
D.R. Horton, Inc.'s current EV/EBITDA is 10.5x. 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 13.6x. This is at the 70th 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 1.02% 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.