Is D.R. Horton, Inc. overvalued or undervalued?

As of 17 April 2025, D.R. Horton, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 9, an EV to EBIT of 8.31, and a Price to Book Value of 1.73.
In comparison to peers, D.R. Horton, Inc. has a P/E ratio of 9.31, which is slightly higher than Lennar Corp. at 9.22 but significantly lower than NVR, Inc. at 90.75. The company's return on equity (ROE) stands at 18.45%, indicating solid profitability relative to its equity. Despite recent underperformance compared to the S&P 500 on a one-year basis, where D.R. Horton saw a decline of 9.64% against the S&P's gain of 10.26%, its long-term performance over three and five years remains strong, suggesting potential for future growth.