KB Home

NYSE:KBH Stock Report

Market Cap: US$5.7b

KB Home Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($77.97) is trading above our estimate of fair value ($31.19)

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 Ratio9.4x
EarningsUS$610.04m
Market CapUS$5.71b

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 Average20.1x
SKY Champion Homes
37.5x21.0%US$5.7b
MDC M.D.C. Holdings
11.9x8.0%US$4.7b
MTH Meritage Homes
7.9x1.1%US$6.4b
IBP Installed Building Products
22.9x8.1%US$5.8b
KBH KB Home
9.4x7.1%US$5.7b

Price-To-Earnings vs Peers: KBH is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (20.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
KBH 9.4xIndustry Avg. 11.2xNo. of Companies11PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KBH is good value based on its Price-To-Earnings Ratio (9.4x) compared to the US Consumer Durables industry average (11.2x).

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 Ratio9.4x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: KBH is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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
CurrentUS$77.97
US$85.23
+9.3%
13.3%US$105.00US$65.00n/a13
Nov ’25US$77.96
US$85.23
+9.3%
13.3%US$105.00US$65.00n/a13
Oct ’25US$85.24
US$85.00
-0.3%
13.4%US$105.00US$65.00n/a13
Sep ’25US$83.71
US$75.23
-10.1%
9.7%US$89.00US$65.00n/a13
Aug ’25US$82.94
US$75.67
-8.8%
9.8%US$89.00US$65.00n/a12
Jul ’25US$67.44
US$75.42
+11.8%
9.3%US$89.00US$65.00n/a12
Jun ’25US$70.60
US$72.96
+3.3%
9.7%US$87.00US$60.00n/a12
May ’25US$65.64
US$72.96
+11.1%
9.7%US$87.00US$60.00n/a12
Apr ’25US$69.87
US$70.81
+1.3%
12.8%US$87.00US$50.00n/a13
Mar ’25US$68.24
US$65.88
-3.5%
12.7%US$82.00US$50.00n/a13
Feb ’25US$60.82
US$65.88
+8.3%
12.7%US$82.00US$50.00n/a13
Jan ’25US$62.46
US$58.29
-6.7%
13.1%US$70.00US$43.00n/a14
Dec ’24US$53.87
US$55.71
+3.4%
9.8%US$64.00US$43.00n/a14
Nov ’24US$46.47
US$55.08
+18.5%
10.7%US$64.00US$43.00US$77.9613
Oct ’24US$46.28
US$57.25
+23.7%
11.5%US$68.00US$43.00US$85.2412
Sep ’24US$51.79
US$57.62
+11.2%
10.8%US$65.00US$43.00US$83.7113
Aug ’24US$54.87
US$57.62
+5.0%
10.8%US$65.00US$43.00US$82.9413
Jul ’24US$51.71
US$57.33
+10.9%
11.1%US$65.00US$43.00US$67.4412
Jun ’24US$43.83
US$44.58
+1.7%
15.8%US$56.00US$29.00US$70.6013
May ’24US$44.02
US$43.79
-0.5%
15.2%US$55.00US$29.00US$65.6412
Apr ’24US$40.18
US$43.79
+9.0%
15.2%US$55.00US$29.00US$69.8712
Mar ’24US$34.89
US$40.83
+17.0%
16.8%US$55.00US$29.00US$68.2412
Feb ’24US$38.83
US$40.45
+4.2%
17.4%US$55.00US$29.00US$60.8211
Jan ’24US$31.85
US$37.27
+17.0%
16.4%US$45.00US$24.00US$62.4611
Dec ’23US$32.01
US$36.82
+15.0%
16.6%US$45.00US$24.00US$53.8711
Nov ’23US$28.85
US$36.45
+26.4%
17.2%US$45.00US$24.00US$46.4711

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

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