D.R. Horton Inc (DHI) is slightly undervalued and Lennar Corp (LEN) is slightly undervalued.
Against our estimates of intrinsic value, LEN trades at the wider discount: a margin of safety of +13%, against +11% for DHI.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $161.27; the price of $144.11 is 11% below that value, and 72% of that value comes from beyond year five.
Leak Score 67/100 on 8 of 12 signals
Discounting its cash flows at 11.1% (average of 3 methods) values the shares at $95.21; the price of $83.06 is 13% below that value, and 69% of that value comes from beyond year five.
Leak Score 54/100 on 8 of 12 signals
| Metric | DHI | LEN |
|---|---|---|
| Verdict | Slightly undervalued | Slightly undervalued |
| Price | $144.11 | $83.06 |
| Intrinsic value | $161.27 | $95.21 |
| Margin of safety | +11% | +13% |
| Leak Score | 67/100 (8/12) | 54/100 (8/12) |
| Market cap | $40.3B | $20.0B |
| Revenue growth, 5 years | 11.0% | 8.7% |
| Operating margin | 12.1% | 5.5% |
| Net margin | 9.2% | 4.1% |
| Return on equity | 12.8% | 5.9% |
| Debt to equity | 0.30 | 0.20 |
| P/E | 13.7x | 15.7x |
| Forward P/E | 12.4x | 15.5x |
| P/B | 1.7x | 0.9x |
| Dividend yield | 1.2% | 2.4% |