WEBULL

Taking Stock of American Homes 4 Rent (AMH): Is the Recent Weakness a Valuation Opportunity?

Simply Wall St · 2d ago

Recent performance and what it might signal

American Homes 4 Rent (AMH) has been drifting lower this year, with the stock down about 13% year to date and roughly 11% over the past year despite steady revenue growth.

See our latest analysis for American Homes 4 Rent.

At around $31.83 per share, American Homes 4 Rent has seen its 1 year share price return move lower even as its 3 year total shareholder return remains solid. This suggests that momentum has cooled while the longer term rental housing story is still intact.

If AMH’s mixed momentum has you reassessing your watchlist, this could be a good moment to explore fast growing stocks with high insider ownership as potential fresh ideas beyond the REIT space.

So with AMH lagging over the past year but still delivering solid multi year returns and trading below analyst targets, is this a mispriced entry point, or is the market already discounting its future rental growth?

Most Popular Narrative Narrative: 16% Undervalued

With American Homes 4 Rent last closing at $31.83 against a narrative fair value near $37.90, the valuation story leans supportive rather than stretched.

The analysts have a consensus price target of $40.45 for American Homes 4 Rent based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $45.0, and the most bearish reporting a price target of just $36.0.

Read the complete narrative.

Curious how a slowing earnings path can still justify a richer future multiple and higher value than today? The answer lies in a surprisingly resilient revenue curve and margin reset that many investors may be underestimating. Want to see exactly how those moving parts add up to this target?

Result: Fair Value of $37.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer demand and slower rent growth, together with rising development and maintenance costs, could undermine the bullish case if conditions deteriorate further.

Find out about the key risks to this American Homes 4 Rent narrative.

Another way to look at value

On earnings, AMH looks less generous. It trades on about 27 times earnings versus 25.1 times for the residential REIT industry, and close to its 27.7 times fair ratio. That narrows the bargain and raises the question: how much upside is really left if growth cools?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:AMH PE Ratio as at Dec 2025
NYSE:AMH PE Ratio as at Dec 2025

Build Your Own American Homes 4 Rent Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your American Homes 4 Rent research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.