Hovnanian Enterprises designs, constructs, markets, and sells residential homes in the United States. The company was founded in 1959 and is based in Red Bank, New Jersey.
HOV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Hovnanian Enterprises Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hovnanian Enterprises Inc ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 94%. The most interesting components of our discounted cash flow analysis for Hovnanian Enterprises Inc ended up being:
In the past 3.74 years, Hovnanian Enterprises Inc has a compound free cash flow growth rate of -0.42%; that's higher than only 2.97% of free cash flow generating stocks in the Consumer Cyclical sector.
6% of the company's capital comes from equity, which is greater than only 2.31% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HOV, try BXG, MLCO, QUOT, SBUX, and BLBD.
(Bloomberg Opinion) -- The Covid-19 pandemic arrested the plans of millions of Americans to purchase a home. But what if you lock someone down in a home they had already mentally moved out of? Might they pour their energy into touring homes online to produce a short list of targets? And might they get preapproved for a mortgage so it’s a simple matter of income verification once the economy reopened and they’d submitted an offer on a home?Of course they would, which helps explain the huge surge in the Mortgage Bankers Association of America’s index tracking applications for loans to buy homes. That gauge has risen for nine straight weeks to reach its highest level since the start of 2009, which defies logic when you consider that more than 44 million Americans have filed for unemploymen...
Persistently low mortgage rates aren't helping homebuilders in today's session, with the iShares U.S. Home Construction ETF sinking 6.5%.The decline comes even as homebuyer demand continued to rebound this week. The 30-year fixed-rate mortgage averaged 3.21% for the week ending June 11, up slightly from 3.18% a week earlier and down...
In this article you are going to find out whether hedge funds think Hovnanian Enterprises, Inc. (NYSE:HOV) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]