D. R. Horton (DHI)

$148.35
EnterprisingGraham classic 1973
5of 6 evaluable criteria

Dividend record not assessed — stored history is shorter than Graham's required window.

This company passes every evaluable criterion on file, but the unbroken dividend record could not be tested — we do not claim a full Graham checklist.

Classic uses stricter thresholds (current ratio 2.0×, 10 years of positive EPS, 20 years of dividends); modern relaxes those to 1.5×, 7 years, and 10 years.

GRAHAM FAIR VALUE
$157.10
MARGIN OF SAFETY
+5.6%
P/E ON 3-YR EARNINGS
11.2×
1.Adequate size$34.3B revenue vs ≥ $500.0M required

Graham wanted only substantial, established companies — small firms are more fragile and volatile.

2.Strong financial conditionNot evaluatedNo balance-sheet data; No debt or working-capital data

Graham's second criterion has two parts: a current-ratio floor and a limit on long-term debt relative to working capital. Both must pass.

Balance-sheet fields not available in filed data — current ratio and debt tests could not be run.

2a. Current ratio of at least 2.0No balance-sheet data

Current assets should comfortably exceed current liabilities, so the company can cover near-term obligations.

2b. Long-term debt within net current assetsNo debt or working-capital data

Long-term debt should not exceed working capital — heavy debt loads make earnings and dividends less secure.

3.Earnings every year10 of 10 years positive (≥10 required)

Graham required uninterrupted profitability over a full economic cycle, proof the business survives downturns.

4.Unbroken dividendsNot evaluated10 years on file (≥20 required)

Graham's original 1973 test wanted 20 unbroken years; modern restatements of the rule accept a 10-year record.

Dividend history available covers 10 years; Graham's rule requires 20.

5.Earnings growth+346% vs ≥33% over 10 years

Per-share earnings should grow at least a third over ten years, showing the business is expanding, not stagnant.

6.Moderate price vs earnings11.2× vs ≤15× required (vs 3-yr avg earnings)

Paying too many multiples of earnings erodes the margin of safety, however good the company.

7.Moderate price overallP/E × P/B = 20.1 vs ≤22.5 required (P/E vs 3-yr avg earnings)

A combined check on both earnings and asset multiples — Graham's classic ceiling for a fairly priced stock.

Fair-value calculator

Graham's combined ceiling: 15× earnings · 1.5× book (defaults).

Max earnings multiple15.0×
Max book multiple1.5×
GRAHAM FAIR VALUE
$157.10
MARGIN OF SAFETY
+5.6%

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