NVR - D.R. Horton Undervalued With Housing Market Booming
- High real multi-family rents and a shortage of housing starts will support demand for new single-family homes.
- The remodeling index, homebuilder sentiment, mortgage applications, new single-family permits, and record low existing inventory all point towards a booming housing sector.
- D.R. Horton generates the second-best ROIC and ROE in the sector with room to improve.
- Our $105 per-share estimate of intrinsic value implies a potential upside of 36%.
- Monte Carlo simulation indicates an asymmetric return profile with approximately 88% of valuations above the current market price.
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D.R. Horton Undervalued With Housing Market Booming