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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for M/I Homes Inc. To summarize, we found that M/I Homes Inc ranked in the 71th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 203.5%. The most interesting components of our discounted cash flow analysis for M/I Homes Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 10.54 -- which is good for besting 79.22% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
M/I Homes Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 3.58% of tickers in our DCF set.
MHO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 3.58% of tickers in our DCF 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 MHO, try QSR, CMPR, FWONA, DIN, and LEE.
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M/I Homes, Inc. (NYSE: MHO) today announced the expiration and results of its previously announced registered exchange offer to exchange any and all of its $400,000,000 aggregate principal amount of 4.95% Senior Notes due 2028, which were issued in a private placement (the "Original Notes"), for an equal principal amount of its 4.95% Senior Notes due 2028, which have been registered under the Securities Act of 1933, as amended (the "Exchange Notes").
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