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Dream Finders Homes Inc (DFH) Stock by the Numbers

Wednesday, February 28, 2024 02:48 PM | InvestorsObserver Analysts

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Dream Finders Homes Inc (DFH) Stock by the Numbers

Dream Finders Homes Inc (DFH) receives a strong valuation ranking of 73 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. DFH has a better value than 73% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 73
DFH gets a 73 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DFH!

Metrics Analysis

DFH has a trailing twelve month Price to Earnings (PE) ratio of 12.2. The historical average of roughly 15 shows a average value for DFH stock as investors are paying fair share prices relative to the company's earnings. DFH's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.62 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
DFH's 12-month-forward PE to Growth (PEG) ratio of 1.46 is considered a poor value as the market is overvaluing DFH in relation to the company's projected earnings growth due. DFH's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

DFH's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. DFH's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Dream Finders Homes Inc (DFH) stock.

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