KB Home (KBH) Fair Value & Analysis
Consumer Cyclical · US · Market cap $3.5B
KB Home
KBH · US
Fair value as of: Jul 13, 2026
From 26 valuation models · updated 28 days ago
Fair value updated Jul 13, 2026, revised from $79.90 to $82.48 (+3.2%) since Jun 24, 2026. Share price +4.0% over the past month.
A solid business, screening 41% undervalued on our models.
What matters now
- 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 ($54.99 to $132.52) 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 Jul 13, 2026.
How to read this chart
60‑month range $23.97 – $87.06 · fair‑value band $54.99 – $132.52 · the $58.59 price screens below the $82.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.
Analysis
KB Home (KBH) currently trades at $58.59, while our model-based Fair Value estimate is $82.48, implying the stock looks roughly 40.8% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
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 Jul 13, 2026
Our scenario range runs from $54.99 (bear case) to $132.52 (bull case); at $58.59, the current price sits within 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 14% below its 52-week high and 33% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 44% fair-value upside, at 41%, KBH screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 26 models by family
Widest divergence: Growth Earnings ($137.73) versus Dividend Discount ($16.28). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 57 · Market factors (momentum, volatility) 47
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.
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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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- KB Home (KBH) Advances While Market Declines: Some Information for Investors
- KB HOME OPENS AURORA, A NEW COMMUNITY WITHIN ONE LAKE, A DESIRABLE MASTER PLAN IN FAIRFIELD, CALIFORNIA
- KB HOME OPENS ELOWEN: NEW TOWNHOMES FROM THE $390Ks IN LAS VEGAS
- KB HOME OPENS POPPY AND QUINN WITHIN VALENCIA, A PREMIER LOS ANGELES COUNTY MASTER PLAN
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
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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| D.R. Horton, Inc DHI | $149.39 | $214.93 | +44% |
| PulteGroup, Inc PHM | $124.75 | $193.56 | +55% |
| Lennar Corporation LEN | $83.89 | $146.58 | +75% |
| NVR, Inc NVR | $6,479 | $7,821 | +21% |
| Toll Brothers, Inc TOL | $150.76 | $225.76 | +50% |
| Taylor Morrison Home Corporation TMHC | $72.13 | $144.47 | +100% |
| Installed Building Products, Inc IBP | $228.65 | $209.51 | -8% |
| Meritage Homes Corporation MTH | $73.83 | $104.26 | +41% |
| Champion Homes, Inc SKY | $82.70 | $75.12 | -9% |
| Cavco Industries, Inc CVCO | $569.16 | $421.10 | -26% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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