NEW YORK, July 31, 2026, 10:13 ET — U.S. markets are open.
- Berkshire Hathaway Inc. NYSE:BRK.B finalized its $72.50-per-share cash purchase on July 24. Trading in Taylor Morrison shares has ended.
- The acquisition cost is approximately 10.8 times past earnings, representing a discount of almost 19% compared to the median of four major peers.
- The average rate for a 30-year mortgage increased to 6.66% this week. Shares of public homebuilders declined in early trading on Friday.
Taylor Morrison’s stock is not trading on Friday. Berkshire finalized its all-cash buyout on July 24, after which trading was halted.
The $72.50 offer represented roughly 10.8 times trailing earnings. Four major public builders have a median multiple of 13.3 times. This puts the acquisition price almost 19% under the sector median.
The investor perspective stems from this difference. Berkshire offered a premium over the previous trading price, but the deal did not reach the highest valuations in the sector. Most of the premium reflected Taylor Morrison’s depressed stock price before the acquisition.
Taylor Morrison transaction numbers
| Measure | Value | Comparison |
|---|---|---|
| Closing price before announcement, May 29 | $58.50 | — |
| Cash offer | $72.50 | — |
| Premium to headline | 23.9% | Compared to prior closing |
| Last reported price | $72.45 | July 24 |
| Outstanding cash premium | $0.05 | Roughly 0.07% |
| Total equity valuation | $6.8 billion | According to company |
| Total enterprise value | $8.5 billion | According to company |
| Time from announcement to close | 54 days | May 31 to July 24 |
Figures on filings and stock performance; percentage changes and time intervals derived from disclosed information.
Holders of each public share entitled to $72.50 in cash, with no interest included. The final spread of five cents represented approximately seven basis points. Official delisting takes effect August 3.
Leading homebuilders traded lower early Friday, with their trailing earnings multiples still above the acquisition multiple for Taylor Morrison.
Comparison of valuation with listed peers
| Company | Price or consideration | Friday move | Trailing P/E |
|---|---|---|---|
| Taylor Morrison cash consideration | $72.50 | Not trading | 10.8x |
| Toll Brothers Inc. NYSE:TOL | $148.64 | down 0.9% | 11.3x |
| PulteGroup Inc. NYSE:PHM | $127.53 | down 0.9% | 13.0x |
| Lennar Corp. NYSE:LEN | $82.93 | down 1.0% | 13.6x |
| D.R. Horton Inc. NYSE:DHI | $144.58 | down 0.7% | 13.8x |
| Four-peer median | — | — | 13.3x |
Figures as of around 09:58 ET. Taylor Morrison’s valuation uses the $72.50 offer price and latest reported trailing EPS of $6.71.
A lower price does not guarantee value. In its last reported public quarter, Taylor Morrison experienced significant declines. Closings dropped 25.6%, and the adjusted gross margin contracted by 420 basis points.
Last quarter on record for Taylor Morrison
| Measure | Latest period | Comparison period | Change |
|---|---|---|---|
| Home closings | 2,268 | 3,048 | -25.6% |
| Home-closing revenue | $1.311 billion | $1.830 billion | -28.3% |
| Average closing price | $578,000 | $600,000 | -3.7% |
| Adjusted closing gross margin | 20.6% | 24.8% | -4.2 percentage points |
| Cancellation rate | 10.0% | 11.0% | -1.0 percentage point |
| Order backlog | 3,465 homes | 2,819 at year-end | +23.0% sequentially |
The most recent period refers to the first quarter of 2026. Figures are compared year-on-year, except for the backlog.
Management attributed softer demand to elevated rates, persistent inflation and cautious buyers. Discounts and financing offers represented an increase of 330 basis points of base revenue. Quick move-in homes made up 69% of closings, up from 58%.
Certain indicators saw gains. Backlog increased 23% compared to the end of the year, as cancellations declined. Overall liquidity was approximately $1.6 billion.
Rate levels continue to be tight. The average 30-year mortgage at Freddie Mac increased by eight basis points to 6.66% on July 30, still six basis points under the figure from a year earlier.
Census data also reflects a mixed trend. New-home sales in June increased by 1.6% compared to May, but declined 5.6% from June 2025. Inventory levels stayed elevated.
Overview of the U.S. new-home market
| Indicator | Latest estimate | Prior month or week | Year earlier |
|---|---|---|---|
| 30-year mortgage rate | 6.66% | 6.58% | 6.72% |
| New-home sales, annual pace | 628,000 | 618,000 | 665,000 |
| New-home supply in months | 9.3 | 9.4 | 9.0 |
| Median price for new homes | $398,300 | $412,000 | $409,200 |
Mortgage figures refer to July 30. Home sales numbers are early Census projections for June, and some changes come with considerable confidence intervals.
Greg Abel stated that Taylor Morrison would oversee a “unified site-built homebuilding operation.” Sheryl Palmer described the expanded “scale and reach” as transformative. Together, the two firms built almost 23,000 site-built homes in 2025. According to the companies, this total positioned them fourth in the nation. Taylor Morrison Investors
The result is set for previous shareholders. The cash payout locked in the 24% premium and eliminated exposure to public-market fluctuations. They are now excluded from any recovery in the housing market.
The focus for Berkshire investors now turns to implementation. The acquisition brought national reach at an earnings multiple lower than peers. Future returns will hinge on restoring margins, maintaining discipline in land use and successful integration.
Risks: Trailing multiples may appear favorable for cyclical companies when earnings decline. Peer comparisons shift as share prices and profits move. Substantial incentives, land expenses or integration costs might eliminate the suggested discount.
Taylor Morrison is set to be officially delisted from the NYSE on August 3. The company intends to file Form 15 to end its stand-alone reporting obligations. Afterward, investors are expected to follow Taylor Morrison’s performance primarily via Berkshire.
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