NEW YORK, July 27, 2026, 10:06 EDT — Shares were halted in U.S. regular session after Berkshire wrapped up its $6.8 billion takeover of Taylor Morrison at a multiple of 10.8 times earnings.
- Taylor Morrison shares were halted following the market close on Friday. Qualifying shareholders will get $72.50 in cash for each share.
- The last quoted price of $72.45 resulted in a merger spread of five cents, or 0.07%.
- The bid values the company at 10.8 times trailing earnings, roughly 21% lower than three major peers.
Shares of Taylor Morrison Home Corporation NYSE:TMHC did not trade on Monday. Berkshire Hathaway Inc. NYSE:BRK.B finalized its $6.8 billion all-cash acquisition on Friday.
Eligible public shareholders receive the right to $72.50 in cash per share. The NYSE halted trading following the close on Friday.
The last trade on Friday came in at $72.45. The merger spread stood at five cents, or 0.07% on a gross basis. Delisting becomes official as of August 3.
The more significant figure is 10.8. According to market data, Taylor Morrison’s trailing EPS stands at $6.71. This means the cash bid values the company at 10.8 times its earnings.
The average price-to-earnings ratio for three major publicly traded builders stood at 13.7 on Monday morning. Berkshire acquired at a multiple roughly 21% beneath that figure. Even accounting for a 24% premium over the unaffected closing price, the discount held.
| Company | Price or reference | Monday move | Trailing P/E |
|---|---|---|---|
| Taylor Morrison | $72.50 cash | Trading halted | 10.8x |
| D.R. Horton Inc. NYSE:DHI | $149.59 | Up 1.9% | 14.3x |
| Lennar Corp. NYSE:LEN | $85.96 | Gained 1.6% | 13.6x |
| PulteGroup Inc. NYSE:PHM | $130.61 | Rose 1.4% | 13.3x |
Delayed quotes were accessed at 10:06 EDT. Taylor Morrison’s multiple is based on the offer price and the trailing EPS from market feeds. Variations in business mix, debt levels, and regional exposure exist within the group.
The headline premium compared to book value appears narrower. As of March 31, Taylor Morrison listed $64 per share. The bid was 13.3% higher than this amount. Prior to the announcement, the stock traded 8.6% beneath book value.
Scale represented the key advantage. In 2025, Taylor Morrison and Clayton Properties Group together delivered almost 23,000 site-built homes. Their unified operations cover 21 states, 52 markets, and over 700 communities. According to the companies, this places them fourth in the national ranking.
Berkshire CEO Greg Abel stated that Taylor Morrison “will lead our vision for a unified site-built homebuilding operation.” Sheryl Palmer continues as chief executive. PR Newswire
The move goes against the trend. Initial June new-home sales climbed by 1.6% to an annual rate of 628,000. However, sales remained 5.6% lower compared to the same period last year. The uptick for the month was not statistically meaningful.
Inventory stood at 9.3 months’ worth of sales. The median price was down 2.7% from a year earlier, at $398,300. Price sensitivity continues to shape demand.
Builders experienced comparable strain in July. The confidence index dropped to 34, with 63% offering sales incentives. Price reductions were implemented by 37% of builders.
Taylor Morrison experienced the impact earlier. Net orders for the first quarter dropped 13.6%. The home-closing gross margin decreased to 20%, down from 24%, amid rising discounts. Net income declined by over half to $98.6 million.
UBS analyst John Lovallo described the acquisition as “a strong vote of confidence” for the industry’s long-term prospects. With this deal, Berkshire gains exposure to that cycle. Reuters
Berkshire now assumes the risks. Ongoing incentives, tighter margins and the challenge of integrating 15 builders may weigh on returns. Ex-TMHC investors are not exposed to that operational risk.
The arbitrage closed with the spread nearly eliminated. Public shareholders are paid in cash, while upcoming gains tied to the housing cycle benefit Berkshire.
