DR Horton Inc
XMUN:HO2
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (5.1), the stock would be worth €87.36 (29% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 7.1 | €122.9 |
0%
|
| 3-Year Average | 5.1 | €87.36 |
-29%
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| 5-Year Average | 4.5 | €77.58 |
-37%
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| Industry Average | 9.3 | €159.83 |
+30%
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| Country Average | 14.4 | €247.67 |
+102%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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€31.5B
|
/ |
Jan 2026
$4.7B
|
= |
|
|
€31.5B
|
/ |
Sep 2026
$4.4B
|
= |
|
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€31.5B
|
/ |
Sep 2027
$4.9B
|
= |
|
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€31.5B
|
/ |
Sep 2028
$6.1B
|
= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| US |
D
|
DR Horton Inc
XMUN:HO2
|
25.7B EUR | 7.1 | 9.1 | |
| US |
|
D R Horton Inc
NYSE:DHI
|
41.4B USD | 9.5 | 12.4 | |
| US |
|
Pultegroup Inc
NYSE:PHM
|
23.2B USD | 7.3 | 10.5 | |
| US |
|
Lennar Corp
NYSE:LEN
|
22B USD | 8.3 | 10.7 | |
| US |
|
NVR Inc
NYSE:NVR
|
18.9B USD | 9.8 | 14.1 | |
| JP |
|
Sekisui House Ltd
TSE:1928
|
2.4T JPY | 9.4 | 10.2 | |
| US |
|
Toll Brothers Inc
NYSE:TOL
|
13.3B USD | 8.1 | 9.6 | |
| US |
|
TopBuild Corp
NYSE:BLD
|
11.1B USD | 13.5 | 21.2 | |
| UK |
|
Barratt Developments P L C
LSE:BDEV
|
6.8B GBP | 11.4 | 31.3 | |
| US |
|
Installed Building Products Inc
NYSE:IBP
|
7.7B USD | 16.6 | 29.1 | |
| JP |
|
Open House Group Co Ltd
TSE:3288
|
1.2T JPY | 9.1 | 11 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 14.4 |
| 70th Percentile | 21.5 |
| Max | 1 767 274.1 |
Other Multiples
DR Horton Inc
Glance View
In the labyrinth of the American housing market, D.R. Horton Inc. stands as a formidable architect of suburban dreams, weaving the aspirations of countless families into tangible realities. Founded in 1978 by Donald R. Horton in the fertile grounds of Fort Worth, Texas, the company has etched its name as a cornerstone in homebuilding, capitalizing on the burgeoning demand for residential spaces across America. D.R. Horton’s journey is characterized by its acute ability to deliver quality homes without losing sight of affordability, serving a diverse clientele that spans from entry-level buyers to luxury seekers. This strategic approach is anchored in its robust land acquisition and development prowess, allowing the company to position itself optimally across various markets and economic cycles. As the largest homebuilder by volume in the United States, D.R. Horton skillfully navigates the intricate dance of supply and demand, scaling its operations and adjusting its product mix with the ebb and flow of market conditions. The company’s financial orchestration is noteworthy, with revenue streams harmonized from home sales boosted by its mortgage subsidiary, DHI Mortgage, which offers tailored financial services to its buyers. By marrying construction with financing, D.R. Horton not only captures additional revenue margins but also fortifies its customer base, ensuring that its homes are accessible to a broad segment of society. Thus, its business model is a symphony of strategic planning, operational efficiency, and customer-focused service, which forms the backbone of its sustained growth and market dominance.