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:
Below please find a table outlining a discounted cash flow forecast for MHO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that M/I Homes Inc ranked in the 93th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2633% on a DCF basis. The most interesting components of our discounted cash flow analysis for M/I Homes Inc ended up being:
The compound growth rate in the free cash flow of M/I Homes Inc over the past 4.01 years is 0.77%; that's better than 88.93% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
M/I Homes Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 3.52% of tickers in our DCF set.
MHO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 3.52% 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 LAD, SIG, BGFV, FRGI, and TA.
M/I Homes had its Relative Strength (RS) Rating upgraded from 69 to 80 Thursday. The 80 RS Rating for M/I Homes stock makes it one to watch. When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
MI Homes saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 88 to 96. The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they launch a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.