D.R. Horton Inc (DHI) is slightly undervalued and Meritage Homes Corp (MTH) is slightly overvalued.
Against our estimates of intrinsic value, DHI trades at the wider discount: a margin of safety of +11%, against -11% for MTH.
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 9.4% (average of 3 methods) values the shares at $59.65; the price of $66.40 is 11% above that value, and 75% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | DHI | MTH |
|---|---|---|
| Verdict | Slightly undervalued | Slightly overvalued |
| Price | $144.11 | $66.40 |
| Intrinsic value | $161.27 | $59.65 |
| Margin of safety | +11% | -11% |
| Leak Score | 67/100 (8/12) | 27/100 (3/12) |
| Market cap | $40.3B | $4.3B |
| Revenue growth, 5 years | 11.0% | 5.4% |
| Operating margin | 12.1% | 7.1% |
| Net margin | 9.2% | 6.1% |
| Return on equity | 12.8% | 6.4% |
| Debt to equity | 0.30 | 0.38 |
| P/E | 13.7x | 13.9x |
| Forward P/E | 12.4x | 11.2x |
| P/B | 1.7x | 0.9x |
| Dividend yield | 1.2% | 2.9% |