Cavco Industries Inc (CVCO) is slightly overvalued and D.R. Horton Inc (DHI) is slightly undervalued.
Against our estimates of intrinsic value, DHI trades at the wider discount: a margin of safety of +16%, against -12% for CVCO.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 11.1% (average of 3 methods) values the shares at $457.76; the price of $510.97 is 12% above that value, and 70% of that value comes from beyond year five.
Leak Score 63/100 on 12 of 12 signals
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $161.02; the price of $135.31 is 16% below that value, and 72% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
| Metric | CVCO | DHI |
|---|---|---|
| Verdict | Slightly overvalued | Slightly undervalued |
| Price | $510.97 | $135.31 |
| Intrinsic value | $457.76 | $161.02 |
| Margin of safety | -12% | +16% |
| Leak Score | 63/100 (12/12) | 65/100 (9/12) |
| Market cap | $3.9B | $37.8B |
| Revenue growth, 5 years | 15.3% | 11.0% |
| Operating margin | 9.6% | 12.1% |
| Net margin | 7.9% | 9.2% |
| Return on equity | 16.7% | 12.8% |
| Debt to equity | 0.04 | 0.30 |
| P/E | 22.2x | 12.9x |
| Forward P/E | 18.2x | 12.0x |
| P/B | 3.5x | 1.6x |
| Dividend yield | — | 1.3% |