Damn. Now I regret not reading this sooner. It already reached your intrinsic value in a span of few months! what do you think at this current prices? seems really frothy given your assumptions.
Nice work here. Another company has just become public and probably closest comp to dreams United homes. Symbol UHG. They growing quicker and have higher margins. Have you looked into ?
Wow, really appreciate your write ups. You can tell that you put a lot of thought into them! Out of curiosity, where do you pull your data from to build the DCF?
It seems to me one big difference between NVR and DFH behind land/lot option model is motivation. NVR is doing that for conservativeness and DFH is from aggressiveness. NVR use options to be asset light while DHF use options to leverage up, as NVR is net cash while DFH borrow heavily from its credit facility. In a real estate up market, especially in FL in the past 10yrs, DFH/aggressiveness did well. However, what would happen in a down market? In your homebuilding Part 1, you mentioned NVR is the only long lived home builder thanks to their conservativeness. DFH does not strike to me as that. I am no expert in home building business and generally do not like leverage too much. So I could be both ignorant and bias on this topic. I would like to hear what I am missing here.
Damn. Now I regret not reading this sooner. It already reached your intrinsic value in a span of few months! what do you think at this current prices? seems really frothy given your assumptions.
Nice work here. Another company has just become public and probably closest comp to dreams United homes. Symbol UHG. They growing quicker and have higher margins. Have you looked into ?
Wow, really appreciate your write ups. You can tell that you put a lot of thought into them! Out of curiosity, where do you pull your data from to build the DCF?
Your work is amazing, thank you so much for sharing it.
It seems to me one big difference between NVR and DFH behind land/lot option model is motivation. NVR is doing that for conservativeness and DFH is from aggressiveness. NVR use options to be asset light while DHF use options to leverage up, as NVR is net cash while DFH borrow heavily from its credit facility. In a real estate up market, especially in FL in the past 10yrs, DFH/aggressiveness did well. However, what would happen in a down market? In your homebuilding Part 1, you mentioned NVR is the only long lived home builder thanks to their conservativeness. DFH does not strike to me as that. I am no expert in home building business and generally do not like leverage too much. So I could be both ignorant and bias on this topic. I would like to hear what I am missing here.
Gotcha thanks! Do you use tikr or something similar to input the financials into your DCF or do you fill it in by hand?