KB Home

NYSE:KBH Stock Report

Market Cap: US$6.5b

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 ($86.04) is trading above our estimate of fair value ($62.9)

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?

Other financial metrics that can be useful for relative valuation.

KBH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA9.5x
PEG Ratio2.5x

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 Average20.6x
MTH Meritage Homes
8.8x-2.3%US$7.4b
IBP Installed Building Products
24.7x9.9%US$6.3b
TMHC Taylor Morrison Home
9.8x10.9%US$7.2b
SKY Champion Homes
39x24.6%US$5.5b
KBH KB Home
10.7x4.4%US$6.5b

Price-To-Earnings vs Peers: KBH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (20.6x).

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
Industry Avg.n/a8.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.7%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: KBH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the US Consumer Durables industry average (12.5x).

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 Ratio10.7x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: KBH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

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$86.04
US$76.77
-10.8%
9.5%US$89.00US$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$43.00n/a13
Oct ’24US$46.28
US$57.25
+23.7%
11.5%US$68.00US$43.00n/a12
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
Oct ’23US$25.92
US$38.38
+48.1%
19.5%US$53.00US$24.00US$46.2813
Sep ’23US$28.25
US$39.13
+38.5%
24.1%US$60.00US$24.00US$51.7915

Analyst Forecast: Target price is lower than the current share price.

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