TacticScale
Consumer Cyclical · Personal Services · FTDR

What Frontdoor Does & How It Makes Money (FTDR)

Updated October 2026 · reflects Frontdoor's latest reported financials

US home warranty provider covering repairs of home systems and appliances. Customers pay for annual home warranty service plans, and Frontdoor arranges and covers the repair or replacement of covered items.

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How Frontdoor makes money

Customers pay for annual home warranty service plans, and Frontdoor arranges and covers the repair or replacement of covered items. It also earns revenue from new home builder warranties and non-warranty home services sold through its website and app.

What Frontdoor does

Frontdoor, Inc. is a US provider of home warranties, founded in 1971 and headquartered in Memphis, Tennessee. Its main product is an annual service plan that covers repair or replacement of major home systems and appliances, including electrical, plumbing, water heaters, kitchen appliances, HVAC, and pools, spas and pumps, giving homeowners protection against expensive, unexpected breakdowns. The company operates through several brands: American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW, which focuses on warranties for new home builders. Frontdoor also offers non-warranty home services through its website and an app that uses video chat, augmented reality, and computer vision and machine learning to help with home repair and maintenance.

Products & services

What is Frontdoor worth?

On an owner-earnings DCF, Frontdoor's most-likely value is about $79 versus a recent price near $80 (1% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$46) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge
Owner-earnings fair value · recent price ≈ $80
Fair value (most likely)
$79
Range
$62–$120
No-growth floor
$46
Price
~$80

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Consumer Cyclical Industry Personal Services HQ United States Ticker FTDR Official site

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