KBR Inc (KBR) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of KBR Inc stock $51.21, price $37.17, upside +37.8%, quality 65 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $29.79 – $69.91 · fair‑value band $30.78 – $74.16 · the $37.17 price screens below the $51.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 7, 2026.
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KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. The company operates through Government Solutions and Sustainable Technology Solutions segments.
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It offers research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, data analytics and integration, systems integration and program management, global supply chain management, operations readiness and support, and professional advisory services, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies.
The company also operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions.
In addition, it provides synergistic services, including energy security, broad-based energy transition and net-zero carbon emission solutions, high-end engineering, design and program management centered around decarbonization, energy efficiency, and environmental impact and asset optimization, as well as digitally-enabled operating and monitoring solutions.
KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.
Stock analysis
KBR Inc (KBR) currently trades at $37.17, while our model-based Fair Value estimate is $51.21, implying the stock looks roughly 27% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $55.76 per share, and 16 of the 22 models we run sit above the $37.17 price.
Bear case: the Dividend Discount group reads lowest at $7.91, and 6 of the 22 models stay below the price. Data coverage for this calculation is high.
Scenario range: $30.78 (bear) to $74.16 (bull), the price of $37.17 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
KBR Inc reported revenue of $7.8B in FY2025 versus $7.3B in FY2021, a compound +1.5%/yr. Reported net income was $415M in FY2025, compounding +98.0%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap $4.7B Mid · P/E ratio 11.2 · P/S ratio 0.60 · EPS (TTM) $3.33 · Dividend yield 0.4% · Net margin 5.7% · Return on equity 27.4% · Return on assets (EBIT) 7.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 25% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −42% fair-value upside, at 38%, KBR screens cheaper than that median.
Fair Value models
Bear$30.78Fair Value $51.21Bull$74.16
Price $37.17 · Upside +37.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.71 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 4 officers or directors bought shares worth $945,160, most recently on May 20, 2026. Buying cluster
BuyJack B MooreDirector4,000 shares at $31.44$125,760May 20, 2026
BuyCarlos A. SabaterDirector14,500 shares at $32.47$470,815May 19, 2026
BuyLewis Von ThaerDirector3,000 shares at $30.77$92,310May 14, 2026
BuyShad E. EvansEVP & Chief Financial Officer8,375 shares at $30.60$256,275May 13, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+0.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.2%
Start year 2020 (pandemic). Over 10 years: +4.3% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+33.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+32.7%
Dividend (yield on the price)0.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 31.9% / 8.6%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.1% → 7%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+0.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −2.1% a year for the price and +2.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate positioning supports decent returns on equity but typical engineering margins and thin signals of durable edges limit overall quality.
Main risk: Generative AI and agentic systems could automate substantial portions of non-physical engineering and design work, reducing demand or margins for KBR's traditional project services in energy and infrastructure.
Bull case: KBR could leverage its investments in physics-informed AI platforms and proprietary process technologies to deliver higher-margin digital solutions and retain or expand its role in complex energy and infrastructure projects.
Bear case: If generative AI automates core engineering tasks and government spending priorities shift, KBR's post-spin-off focus on project-based energy and infrastructure work could face sustained pressure on volumes, pricing and profitability.
KBR is set to spin off its Mission Technology Solutions business as Trinzic early next year. That leaves the core engineering and construction operations more concentrated on energy and infrastructure projects such as the recent Aramco work. Our models currently see it as undervalued. Will the separation sharpen focus on steadier energy contracts or heighten exposure to project timing swings?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Engineering & Construction · 791 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score65 · Top 25%
Fair Value upside+37.8% · Above median
Profitability
Return on equity (12 months)27.4% · Top 25%
Return on assets6.3% · Top 25%
Net margin (12 months)5.7% · Above median
Operating margin (12 months)7.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)5.0% · Above median
Dividend yield (12 months)0.4% · Bottom 25%
Balance sheet
Debt / equity1.70× · Highest 25%
Valuation Multiplesvs Engineering & Construction median · lower = cheaper
P/E (12 months)11.2× · Cheaper than median
P/B3.14× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)0.60× · Cheaper than median
Price / free cash flow (fiscal year)9.8× · Cheaper than median
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Cite: Fair Value Calculator (2026). "KBR Inc Fair Value". https://www.fairvalue-calculator.com/stock/KBR
Frequently asked questions
Is KBR Inc (KBR) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $51.21 versus a price of $37.17, about +38% upside (undervalued).
What is the fair value of KBR?
Our model-based fair value for KBR Inc is $51.21 (as of Nov 7, 2026), built from audited fundamentals. The current price: $37.17.
What is the quality score of KBR?
KBR Inc has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for KBR Inc (KBR)?
Our model-based price target is the fair value of $51.21 (as of Nov 7, 2026) from 22 valuation models. Cautious scenario $30.78, optimistic scenario $74.16. It is a calculation from audited fundamentals, not an analyst target.
What is the KBR Inc stock forecast for 2026?
Our models put fair value at $51.21, about +38% upside versus a price of $37.17 (undervalued). Cautious scenario $30.78, optimistic scenario $74.16. The calculation is refreshed regularly with new filings.
What is the revenue of KBR Inc (KBR)?
KBR Inc reported trailing-twelve-month revenue of about $7.8B (latest available figure, as of Nov 7, 2026).
Does KBR Inc pay a dividend?
KBR Inc currently shows a dividend yield of 0.44% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of KBR Inc (KBR) and when is the ex-dividend date?
KBR Inc pays a dividend of $0.165 per share a year, a dividend yield of 0.4%. The next ex-dividend date is Dec 15, 2026, with payment on Jan 15, 2027. A dividend has been paid every year since at least 2008. The payout ratio is 4.5% of earnings (on adjusted earnings, reported 5.0%). Free cash flow covers the dividend 23.16 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into KBR Inc (KBR)?
For today's price to be fair in a discounted-cash-flow model, KBR Inc would have to grow free cash flow by +0.2 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.2 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of KBR use?
Our models discount KBR Inc at 8.5 %: a base by market capitalisation (mid), damped by beta 0.47, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For KBR Inc that is +0.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has KBR Inc (KBR) delivered so far?
Over the past 5 years revenue at KBR Inc grew +6.2 % a year. The price currently implies free-cash-flow growth of +0.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of KBR Inc (KBR) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into KBR Inc (+0.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of KBR Inc (KBR)?
The free-cash-flow yield on the price is 10.21 %: that much free cash flow KBR Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of KBR Inc (KBR)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For KBR Inc it is $51.21 per share (as of Nov 7, 2026), against a price of $37.17. It is the blended result of 22 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is KBR Inc stock overvalued or undervalued in 2026?
As of Nov 7, 2026, KBR trades below its calculated fair value: price $37.17, fair value $51.21, a gap of about +38% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of KBR?
No. The price is what the market pays today ($37.17); the fair value is what the company's own numbers justify ($51.21). For KBR Inc the two are $14.04 per share apart. That gap is exactly why we show both numbers side by side.
How much is KBR Inc worth?
The market values KBR Inc at about $4.7B (market capitalisation, as of Nov 7, 2026). Per share that is $37.17; our models calculate a fair value of $51.21 per share.
What do the bullish and bearish scenarios say about KBR?
Our models span a range for KBR Inc: cautious scenario $30.78, base $51.21, optimistic $74.16 per share (as of Nov 7, 2026, price $37.17). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KBR?
KBR Inc trades at a price-to-earnings ratio of 11.2 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $51.21 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 10.5 (reported for FY2025: 11.5). Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings, 5 of the years ex one-offs: 25.7. Other multiples: PEG 0.5, P/B 3.1, P/S 0.6, EV/EBITDA 9.7.
What is the PEG ratio of KBR?
The PEG ratio of KBR Inc is 0.54 (P/E divided by earnings growth, as of Nov 7, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of KBR Inc (KBR)?
Balance-sheet figures for KBR Inc (as of Nov 7, 2026): return on equity 27.4%, debt of 1.70 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is KBR from its 52-week high?
KBR Inc trades at $37.17, about 16% below its 52-week high of $44.37 and 25% above the low of $29.79 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $51.21 is for.
Which stocks are comparable to KBR Inc?
From the same area (Industrials) we also value Quanta Services, Inc, Vinci SA, Larsen & Toubro Limited, Comfort Systems USA, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is KBR Inc stock attractive at the current price?
The data as of Nov 7, 2026: price $37.17, calculated fair value $51.21 (+38%), Quality Score 65/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of KBR calculated?
We run KBR Inc through 22 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $51.21 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. KBR Inc currently trades 27% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of KBR Inc (KBR)?
The closing price on Nov 6, 2026 was $37.17. Our model-based fair value is $51.21, about +38% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with KBR Inc right now?
Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($30.78 to $74.16) leaves room in how you read the outcome.
Key figures of KBR Inc
How large is the market capitalisation of KBR Inc (KBR)?
The market capitalisation of KBR Inc is $4.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of KBR Inc (KBR)?
The price-to-sales ratio of KBR Inc is 0.60 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of KBR Inc (KBR)?
Earnings per share at KBR Inc are $3.33 (price ÷ EPS = P/E 11.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of KBR Inc (KBR)?
The dividend yield of KBR Inc is 0.4% (payout 4.5%, on adjusted earnings, reported 5.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of KBR Inc (KBR)?
The net margin of KBR Inc is 5.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of KBR Inc (KBR)?
The return on equity (ROE) of KBR Inc is 27.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of KBR Inc (KBR)?
On an EBIT basis the return on assets of KBR Inc is 7.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of KBR Inc (KBR)?
The operating margin of KBR Inc is 7.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at KBR Inc (KBR)?
Revenue at KBR Inc is growing +5.0% versus a year earlier (3y avg +5.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at KBR Inc (KBR)?
Earnings per share at KBR Inc are growing +17.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does KBR Inc (KBR) carry?
The net debt of KBR Inc is $2.6B (fiscal year 2025, ≈ 5.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 7, 2026