D.R. Horton Inc (DHI) is slightly undervalued and Champion Homes Inc (SKY) is slightly overvalued.
Against our estimates of intrinsic value, DHI trades at the wider discount: a margin of safety of +11%, against -20% for SKY.
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 9.9% (average of 3 methods) values the shares at $74.32; the price of $88.84 is 20% above that value, and 74% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | DHI | SKY |
|---|---|---|
| Verdict | Slightly undervalued | Slightly overvalued |
| Price | $144.11 | $88.84 |
| Intrinsic value | $161.27 | $74.32 |
| Margin of safety | +11% | -20% |
| Leak Score | 67/100 (8/12) | 59/100 (3/12) |
| Market cap | $40.3B | $4.8B |
| Revenue growth, 5 years | 11.0% | 13.4% |
| Operating margin | 12.1% | 8.9% |
| Net margin | 9.2% | 7.2% |
| Return on equity | 12.8% | 12.2% |
| Debt to equity | 0.30 | 0.08 |
| P/E | 13.7x | 26.0x |
| Forward P/E | 12.4x | 20.8x |
| P/B | 1.7x | 3.1x |
| Dividend yield | 1.2% | — |