KB Home Valuation

Is KBH * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KBH * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KBH * (MX$1567) is trading above our estimate of fair value (MX$578.59)

Significantly Below Fair Value: KBH * is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for KBH *?

Key metric: As KBH * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KBH *. This is calculated by dividing KBH *'s market cap by their current earnings.
What is KBH *'s PE Ratio?
PE Ratio9.5x
EarningsUS$610.04m
Market CapUS$5.82b

Price to Earnings Ratio vs Peers

How does KBH *'s PE Ratio compare to its peers?

The above table shows the PE ratio for KBH * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.5x
VINTE * Vinte Viviendas Integrales. de
17.5x17.2%Mex$7.5b
ARA * Consorcio ARA S. A. B. de C. V
6.3x10.2%Mex$4.1b
JAVER * Servicios Corporativos Javer. de
4.5x13.3%Mex$3.3b
CADU A Corpovael. de
5.7x22.1%Mex$1.1b
KBH * KB Home
9.5x7.1%Mex$5.8b

Price-To-Earnings vs Peers: KBH * is expensive based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (8.5x).


Price to Earnings Ratio vs Industry

How does KBH *'s PE Ratio compare vs other companies in the South American Consumer Durables Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies3PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KBH * is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Global Consumer Durables industry average (15.5x).


Price to Earnings Ratio vs Fair Ratio

What is KBH *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KBH * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KBH *'s Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KBH * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$1,567.00
Mex$1,689.63
+7.8%
13.3%Mex$2,081.54Mex$1,288.57n/a13
Nov ’25n/a
Mex$1,645.37
0%
13.3%Mex$2,027.01Mex$1,254.82n/a13
Oct ’25Mex$1,690.00
Mex$1,673.48
-1.0%
13.4%Mex$2,067.24Mex$1,279.72n/a13
Sep ’25n/a
Mex$1,429.44
0%
9.7%Mex$1,691.06Mex$1,235.05n/a13
Aug ’25n/a
Mex$1,344.20
0%
9.8%Mex$1,581.06Mex$1,154.71n/a12
Jul ’25n/a
Mex$1,368.06
0%
9.3%Mex$1,614.46Mex$1,179.10n/a12
Jun ’25n/a
Mex$1,191.95
0%
9.7%Mex$1,421.35Mex$980.24n/a12
May ’25n/a
Mex$1,191.95
0%
9.7%Mex$1,421.35Mex$980.24n/a12
Apr ’25n/a
Mex$1,177.64
0%
12.8%Mex$1,446.94Mex$831.58n/a13
Mar ’25Mex$1,055.00
Mex$1,135.31
+7.6%
12.7%Mex$1,413.01Mex$861.59n/a13
Feb ’25n/a
Mex$1,135.31
0%
12.7%Mex$1,413.01Mex$861.59n/a13
Jan ’25Mex$1,064.59
Mex$992.74
-6.7%
13.1%Mex$1,192.26Mex$732.39n/a14
Dec ’24n/a
Mex$977.67
0%
9.8%Mex$1,123.07Mex$754.56n/a14
Nov ’24n/a
Mex$1,004.91
0%
10.7%Mex$1,167.72Mex$784.56n/a13
Oct ’24n/a
Mex$983.30
0%
11.5%Mex$1,167.93Mex$738.55Mex$1,690.0012
Sep ’24n/a
Mex$964.36
0%
10.8%Mex$1,087.96Mex$719.73n/a13
Aug ’24n/a
Mex$964.36
0%
10.8%Mex$1,087.96Mex$719.73n/a13
Jul ’24n/a
Mex$984.78
0%
11.1%Mex$1,116.47Mex$738.59n/a12
Jun ’24Mex$770.90
Mex$788.49
+2.3%
15.8%Mex$990.55Mex$512.96n/a13
May ’24Mex$757.00
Mex$798.16
+5.4%
15.2%Mex$1,002.45Mex$528.57n/a12
Apr ’24Mex$733.00
Mex$798.16
+8.9%
15.2%Mex$1,002.45Mex$528.57n/a12
Mar ’24n/a
Mex$774.57
0%
16.8%Mex$1,043.30Mex$550.10Mex$1,055.0012
Feb ’24Mex$553.21
Mex$759.28
+37.3%
17.4%Mex$1,032.28Mex$544.30n/a11
Jan ’24n/a
Mex$732.22
0%
16.4%Mex$884.02Mex$471.48Mex$1,064.5911
Dec ’23n/a
Mex$714.92
0%
16.6%Mex$873.80Mex$466.02n/a11
Nov ’23n/a
Mex$726.24
0%
17.2%Mex$896.48Mex$478.12n/a11

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies