DR Horton Price To Book vs. Market Capitalization
| DHI Stock | USD 168.78 0.65 0.38% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.19 | 0.2591 |
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| Net Profit Margin | 0.0467 | 0.1292 |
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| Operating Profit Margin | 0.087 | 0.1518 |
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| Pretax Profit Margin | 0.0725 | 0.1708 |
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| Return On Assets | 0.0972 | 0.1317 |
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| Return On Equity | 0.35 | 0.1879 |
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For DR Horton profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DR Horton to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DR Horton utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DR Horton's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DR Horton over time as well as its relative position and ranking within its peers.
DHI |
DR Horton's Revenue Breakdown by Earning Segment
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Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DR Horton. If investors know DHI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DR Horton listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 1.2 | Earnings Share 14.33 | Revenue Per Share 111.689 | Quarterly Revenue Growth (0.05) |
The market value of DR Horton is measured differently than its book value, which is the value of DHI that is recorded on the company's balance sheet. Investors also form their own opinion of DR Horton's value that differs from its market value or its book value, called intrinsic value, which is DR Horton's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DR Horton's market value can be influenced by many factors that don't directly affect DR Horton's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DR Horton's value and its price as these two are different measures arrived at by different means. Investors typically determine if DR Horton is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DR Horton's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
DR Horton Market Capitalization vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DR Horton's current stock value. Our valuation model uses many indicators to compare DR Horton value to that of its competitors to determine the firm's financial worth. DR Horton is rated # 5 in price to book category among its peers. It is one of the top stocks in market capitalization category among its peers creating about 25,313,219,028 of Market Capitalization per Price To Book. As of now, DR Horton's Market Cap is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the DR Horton's earnings, one of the primary drivers of an investment's value.DHI Market Capitalization vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
DR Horton |
| = | 2.15 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
DR Horton |
| = | 54.42 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
DHI Market Capitalization vs Competition
DR Horton is one of the top stocks in market capitalization category among its peers. Market capitalization of Consumer Discretionary industry is currently estimated at about 195.47 Billion. DR Horton totals roughly 54.42 Billion in market capitalization claiming about 28% of stocks in Consumer Discretionary industry.
DR Horton Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DR Horton, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DR Horton will eventually generate negative long term returns. The profitability progress is the general direction of DR Horton's change in net profit over the period of time. It can combine multiple indicators of DR Horton, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 5.6 B | 5.9 B | |
| Income Before Tax | 6.3 B | 6.6 B | |
| Total Other Income Expense Net | 697.6 M | 732.5 M | |
| Net Income | 4.8 B | 5 B | |
| Income Tax Expense | 1.5 B | 1.6 B | |
| Net Income Applicable To Common Shares | 5.5 B | 5.7 B | |
| Net Income From Continuing Ops | 4.8 B | 5 B | |
| Non Operating Income Net Other | 68.2 M | 71.6 M | |
| Net Interest Income | 16.7 M | 15.4 M | |
| Interest Income | 16.7 M | 15.4 M | |
| Change To Netincome | 224.4 M | 235.6 M | |
| Net Income Per Share | 14.44 | 0.01 | |
| Income Quality | 0.46 | 1.72 | |
| Net Income Per E B T | 0.76 | 0.64 |
DHI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DR Horton. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DR Horton position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DR Horton's important profitability drivers and their relationship over time.
Use DR Horton in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DR Horton position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DR Horton will appreciate offsetting losses from the drop in the long position's value.DR Horton Pair Trading
DR Horton Pair Trading Analysis
The ability to find closely correlated positions to DR Horton could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DR Horton when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DR Horton - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DR Horton to buy it.
The correlation of DR Horton is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DR Horton moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DR Horton moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DR Horton can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your DR Horton position
In addition to having DR Horton in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. For more detail on how to invest in DHI Stock please use our How to Invest in DR Horton guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project DR Horton's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DR Horton at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DR Horton's income statement, its balance sheet, and the statement of cash flows.