M/I Homes Inc. operates as a builder of single-family homes in Ohio, Indiana, Illinois, Maryland, Virginia, North Carolina, Florida, and Texas, the United States. The company was founded in 1973 and is based in Columbus, Ohio.
MHO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for M/I Homes Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that M/I Homes Inc ranked in the 80th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 536.83%. In terms of the factors that were most noteworthy in this DCF analysis for MHO, they are:
Interest coverage, a measure of earnings relative to interest payments, is 8.77; that's higher than 70.03% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The company's compound free cash flow growth rate over the past 3.32 years comes in at 0.33%; that's greater than 75.69% of US stocks we're applying DCF forecasting to.
M/I Homes Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 3.49% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of M/I Homes Inc? See LBTYA, RSTRF, THO, TIF, and LBY.