NVR, Inc. operates through Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, Fox Ridge Homes, and Heartland Homes trade names. The company was founded in 1979 and is based in Reston, Virginia.
NVR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NVR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Nvr Inc ranked in the 63th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NVR, they are:
The company's balance sheet shows it gets 96% of its capital from equity, and 4% of its capital from debt. Notably, its equity weight is greater than 94.83% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than just 13.29% of the free cash flow producing stocks we're observing.
NVR'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 46.63% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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NVR ([[NVR]] +9.9%) reported Q2 net income of $164.08M a decline of 21.9% Y/Y; and consolidated revenues were $1.62B down by 10% Y/Y.New orders rose by 13% to 5,901 units, and average sales price of new orders increased by 2% Y/Y to $365,400.Homebuilding revenues were $1.59B (-9.6% Y/Y); gross profit...
NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2020 of $164,075,000, or $42.50 per diluted share. Net income and diluted earnings per share for the second quarter ended June 30, 2020 decreased 22% and 20%, respectively, when compared to 2019 second quarter net income of $210,209,000, or $53.09 per diluted share. Consolidated revenues for the second quarter of 2020 totaled $1,620,368,000, which decreased 10% from $1,800,194,000 in the second quarter of 2019.