KB Home (KBH) Fair Value & Analysis
Consumer Cyclical · US · Market cap $3.5B · ISIN US48666K1097
What is KB Home really worth?
KB Home
KBH · US
A solid business, trading 36% below our fair value of $81.25.
Strengths
Risks
For context
Fair value as of: Sep 5, 2026
From 26 valuation models · updated today
Share price −9.5% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case ($54.50). The market is more pessimistic than our downside scenario.
- Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($54.50 to $130.64) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.
How to read this chart
60‑month range $23.87 – $86.69 · fair‑value band $54.50 – $130.64 · the $52.31 price screens below the $81.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.
Analysis
KB Home (KBH) currently trades at $52.31, while our model-based Fair Value estimate is $81.25, implying the stock looks roughly 35.6% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $137.73 per share, and 19 of the 26 models we run sit above the $52.31 price. Bear case: the Dividend Discount group reads lowest at $16.28, and 7 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, KB Home generated revenue of $5.9B at a net margin of 6.0%. Revenue declined 22.6% year over year. It earns a return on equity of 8.9%. Net debt stands at $1.5B. Fundamentals as of Sep 5, 2026
Our scenario range runs from $54.50 (bear case) to $130.64 (bull case); at $52.31, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 23% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 45% fair-value upside, at 55%, KBH screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 9 months have passed since. In that time the company retained roughly $3.20 per share, which is 3.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Growth Earnings ($137.73) versus Dividend Discount ($16.28). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 57 · Market factors (momentum, volatility) 34
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
KB Home operates as a homebuilding company in the United States. It builds and sells homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.
Full company description
KB Home operates as a homebuilding company in the United States. It builds and sells homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also provides financial services, such as mortgage banking services, such as residential consumer mortgage loan originations to homebuyers; property and casualty insurance services, as well as earthquake, flood, and personal property insurance products to homebuyers; and title services. It conducts operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is based in Los Angeles, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
KB Home reported revenue of $6.2B in FY2025 versus $5.7B in FY2021, a compound +2.2%/yr. Reported net income was $429M in FY2025, compounding −6.7%/yr from FY2021.
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Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- KB Home (KBH) Registers a Bigger Fall Than the Market: Important Facts to Note
- 3 Reasons to Sell KBH and 1 Stock to Buy Instead
- Unpacking Q2 Earnings: KB Home (NYSE:KBH) In The Context Of Other Home Builders Stocks
- KB Home (KBH) Faces A Valuation Test Following Softer Orders And Margin Pressure
Peer Group
Residential Construction · 65 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Residential Construction median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| D.R. Horton, Inc DHI | $145.26 | $213.23 | +47% |
| PulteGroup, Inc PHM | $126.75 | $190.17 | +50% |
| Lennar Corporation LEN | $85.11 | $116.80 | +37% |
| NVR, Inc NVR | $6,396 | $7,821 | +22% |
| Toll Brothers, Inc TOL | $146.22 | $221.32 | +51% |
| Taylor Morrison Home Corporation TMHC | $72.45 | $136.88 | +89% |
| Installed Building Products, Inc IBP | $237.70 | $209.51 | −12% |
| Meritage Homes Corporation MTH | $71.06 | $102.94 | +45% |
| Champion Homes, Inc SKY | $93.88 | $75.12 | −20% |
| Cavco Industries, Inc CVCO | $598.38 | $421.10 | −30% |
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