Update shared on 03 Dec 2025
Analysts have nudged their price target on Forestar Group slightly higher to align with a fair value estimate of $32.50 per share, citing marginal improvements in discount rate assumptions and steady expectations for revenue growth, profit margins, and future valuation multiples.
What's in the News
- Issued fiscal 2026 guidance targeting delivery of 14,000 to 15,000 lots, signaling confidence in sustained lot development activity and demand (Key Developments)
- Projected fiscal 2026 revenue in the range of $1.6 billion to $1.7 billion, indicating expectations for meaningful topline expansion versus current levels (Key Developments)
- Reaffirmed a forward strategy centered on scaled lot development for homebuilders, highlighting visibility into multi year growth and cash flow generation (Key Developments)
Valuation Changes
- The fair value estimate remains unchanged at $32.50 per share, indicating no reassessment of intrinsic value.
- The discount rate has fallen slightly from 10.64 percent to 10.61 percent, reflecting a modest reduction in perceived risk or cost of capital.
- Revenue growth expectations are essentially unchanged, edging up only fractionally from 4.89 percent to 4.89 percent.
- The net profit margin forecast is effectively stable, dipping marginally from 9.65 percent to 9.65 percent.
- The future P/E multiple has decreased slightly from 12.12x to 12.11x, pointing to a negligible adjustment in expected valuation levels.
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