D.R. Horton Inc (DHI) is slightly undervalued and PulteGroup Inc (PHM) is undervalued.
Against our estimates of intrinsic value, PHM trades at the wider discount: a margin of safety of +32%, 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 10.5% (average of 3 methods) values the shares at $179.30; the price of $122.29 is 32% below that value, and 72% of that value comes from beyond year five.
Leak Score 77/100 on 9 of 12 signals
| Metric | DHI | PHM |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $144.11 | $122.29 |
| Intrinsic value | $161.27 | $179.30 |
| Margin of safety | +11% | +32% |
| Leak Score | 67/100 (8/12) | 77/100 (9/12) |
| Market cap | $40.3B | $22.9B |
| Revenue growth, 5 years | 11.0% | 9.4% |
| Operating margin | 12.1% | 15.6% |
| Net margin | 9.2% | 11.6% |
| Return on equity | 12.8% | 14.9% |
| Debt to equity | 0.30 | 0.19 |
| P/E | 13.7x | 12.5x |
| Forward P/E | 12.4x | 11.0x |
| P/B | 1.7x | 1.8x |
| Dividend yield | 1.2% | 0.8% |