NEW YORK, July 29, 2026, 09:59 EDT — U.S. markets have begun trading.
- Taylor Morrison ended the session at $72.45, closing five cents under the cash offer.
- Berkshire’s purchase price was approximately 10.8 times trailing earnings, which is around 19% less than the average for four peers.
Berkshire Hathaway Inc. NYSE:BRK.B has finalized its all-cash acquisition of Taylor Morrison Home Corporation NYSE:TMHC, ending public trading of Taylor Morrison shares. Eligible shareholders receive $72.50 in cash per share. According to the filing, trading ceased after July 24.
The last price recorded was $72.45, resulting in a spread of five cents, which equates to approximately 0.07%. Afterward, previous holders were left with just the cash entitlement.
The premium over the headline figure outweighed the valuation ratio. Berkshire’s offer was 24% higher than Taylor Morrison’s closing price of $58.50 on May 29. However, dividing $72.50 by trailing earnings of $6.71 yields a multiple of roughly 10.8 times.
The $6.8 billion equity value equates to approximately 1.09 times book equity as of March, based on calculations. Taylor Morrison’s equity stood at $6.25 billion at March 31.
At 09:43 EDT, the average trailing earnings multiple for four leading public builders was roughly 13.3 times. Berkshire’s acquisition multiple was around 19% under this average.
| Company | Price or deal value | Day move | Trailing P/E |
|---|---|---|---|
| Taylor Morrison Home NYSE:TMHC | $72.50 cash; $72.45 final quote | No trading activity | 10.8x |
| Toll Brothers NYSE:TOL | $153.31 | down 1.1% | 11.7x |
| Lennar NYSE:LEN | $86.44 | down 1.4% | 13.6x |
| PulteGroup NYSE:PHM | $133.74 | off 0.8% | 13.7x |
| D.R. Horton NYSE:DHI | $150.68 | off 0.3% | 14.3x |
Berkshire’s B shares fell 0.4% to $510.45. Berkshire now holds the public-market exposure, not TMHC. Taylor Morrison remains a fully owned subsidiary.
Greg Abel stated that Taylor Morrison will spearhead Berkshire’s “vision for a unified site-built homebuilding operation.” CEO Sheryl Palmer will continue to oversee the integration process with Clayton Properties Group. Taylor Morrison Investors
UBS Group NYSE:UBS analyst John Lovallo described the transaction as a “strong vote of confidence.” He noted the combined company could be one of the five biggest homebuilders in the United States. Reuters
The discounted multiple indicates a more challenging operating environment. First-quarter closing revenue declined by 28%, and closing volume was down 26%. Net orders decreased by 14%. The adjusted closing gross margin stood at 20.6%.
Taylor Morrison pointed to elevated mortgage rates, tariffs, and inflation. The company boosted incentives and financing assistance after a decline in buyer traffic.
Markets remained under pressure this week, with the Mortgage Bankers Association reporting a 6.4% drop in applications as of July 24. Freddie Mac OTCMKTS:FMCC most recently cited a 30-year fixed rate average of 6.58%.
As of the dateline, no second-quarter results had been published. The investor website continued to display Q1 as the most recent update. Previous guidance—not actual outcomes—projected closings between 2,500 and 2,600, with an anticipated average price of $575,000 and a minimum margin of 20%.
Risks: Elevated mortgage rates could necessitate larger incentives, putting pressure on margins. Integration might experience delays or greater costs than anticipated. Operating as a private company will limit transparent financial reporting.
Previous TMHC shareholders currently possess claims to cash rather than shares in a homebuilder. Berkshire has acquired a cyclical position at an earnings multiple lower than competitors.
Related articles: NYSE:BRK.B
