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KBR, Inc (KBR) Fair Value & Analysis

Industrials · US · Market cap $4.6B

KI KBR, Inc logo KBR, Inc KBR · US
Price$38.04
Fair Value$41.74
Upside+9.7%
Quality64/100
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Healthy Growth
Thin margins · 5.2% net margin
High debt · generates free cash flow
1.83% dividend yield
Ranks above peers (9/15)
Moderate moat 54/100
Evidence: High Range $25.53 – $73.48 Share as image

Fair value as of: Jul 17, 2026

From 24 valuation models · updated 23 days ago

Share price +4.9% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The model range is unusually wide ($25.53 to $73.48). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

$70.23 $29.92 Fair Value $41.74 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $29.92 – $70.23 · fair‑value band $25.53 – $73.48 · the $38.04 price screens below the $41.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

KBR, Inc (KBR) currently trades at $38.04, while our model-based Fair Value estimate is $41.74, implying the stock looks roughly 9.7% fairly valued today. The Quality Score stands at 64/100 (solid quality), in the Industrials 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, KBR, Inc generated revenue of $7.7B at a net margin of 5.2%. Revenue declined 4.7% year over year. It earns a return on equity of 29.2%. Net debt stands at $2.6B. Fundamentals as of Jul 17, 2026

Our scenario range runs from $25.53 (bear case) to $73.48 (bull case); at $38.04, 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 29% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 10%, KBR screens cheaper 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $21.16 $32.96 $53.51 80
Residual Income $21.63 $30.65 $209.38 76
Rev-Margin DCF $20.77 $38.60 $60.89 74
All 24 models by family
DCF Models
FCF DCF $19.77 $31.94 $55.05 38
Owner Earnings $24.24 $37.92 $63.91 31
5Y Revenue Exit $20.77 $37.75 $63.02 39
5Y EBITDA Exit $27.54 $49.32 $78.81 41
5Y P/E Exit $24.87 $44.76 $69.05 38
10Y Revenue Exit $19.04 $32.69 $47.88 36
10Y EBITDA Exit $24.13 $39.96 $57.49 37
10Y P/E Exit $22.53 $37.10 $51.55 35
Earnings-Based
Graham-Dodd $22.26 $32.77 $38.75 54
EPV $13.40 $18.06 $22.08 59
Dividend Discount
Gordon GGM $5.82 $6.60 $7.55 70
DDM Multi-Stage $5.82 $7.46 $9.52 61
Multiples
P/E Multiple $51.55 $68.74 $85.92 63
P/S Multiple $41.73 $55.64 $69.55 58
P/B Multiple $40.01 $53.34 $66.68 55
EV/EBIT $40.97 $60.01 $79.05 53
EV/EBITDA $40.53 $59.42 $78.31 54
EV/Revenue $24.62 $42.09 $59.56 43
Asset-Based
NCAV (Graham) $5.93 $7.94 $11.85 50
Growth DCF
Growth DCF $21.16 $32.96 $53.51 80
Rev-Margin DCF $20.77 $38.60 $60.89 74
Economic Profit
Residual Income $21.63 $30.65 $209.38 76
ROIC Compounder $13.45 $18.79 $24.58 72
Growth Earnings
Growth-Adj P/E $36.40 $52.00 $67.60 68

Widest divergence: Multiples ($55.64) versus Dividend Discount ($6.60). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $7.7B
Revenue growth (YoY) -4.7%
Net margin 5.2%
Return on equity 29.2%
Free cash flow $482M FY2025
P/E ratio 10.7
More key figures
Operating margin 6.7%
EPS (TTM) $3.39
Dividend yield 1.8%
EPS growth (YoY) -8.7%
Net debt $2.6B FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 60 · Market factors (momentum, volatility) 43

Profitability 59
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

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

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$7.8B
Latest YoY
+0.6%
Avg. growth/yr (3Y)
+5.9%
Avg. growth/yr (5Y)
+6.2%
Avg. growth/yr (23Y)
+1.8%
Revenue +1.5%/yr
FY21 $7.3B
FY22 $6.6B
FY23 $7.0B
FY24 $7.7B
FY25 $7.8B
Net income +98.0%/yr
FY21 $27.0M
FY22 $190M
FY23 −$265M
FY24 $375M
FY25 $415M

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Cite: Fair Value Calculator (2026). "KBR, Inc Fair Value". https://www.fairvalue-calculator.com/stock/KBR

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Engineering & Construction · 837 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.

Quality Score 64 · Top 25%
Fair Value upside +10% · Above median
Return on equity (TTM) 29% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth -5% · Below median
Dividend yield (TTM) 1.8% · Above median
Debt / equity 1.70× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 10.7× · Cheaper than median
P/B 3.05× · Pricier than 75% of peers
P/S (TTM) 0.60× · Pricier than median
P/FCF 9.5× · Pricier than 75% of peers
EV/EBITDA 10.1× · Pricier than median
PEG 0.54× · Cheaper than 75% of peers

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.

VALUE 46 · sector 16
FUTURE 0 · sector 18
PAST 100 · sector 26
HEALTH 15 · sector 94
DIVIDEND 37 · sector 33

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is KBR, Inc (KBR) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of $41.74 versus a price of $38.04, about +10% (fairly valued).
What is the fair value of KBR?
Our model-based fair value for KBR, Inc is $41.74 (as of Jul 17, 2026), built from audited fundamentals. The current price is $38.04.
What is the quality score of KBR?
KBR, Inc has a Quality Score of 64/100. 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 revenue of KBR, Inc (KBR)?
KBR, Inc reported trailing-twelve-month revenue of about $7.7B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of KBR?
The net profit margin of KBR, Inc is about 5.2%, meaning it keeps roughly 5.2% of revenue as net income. Based on the latest reported figures.
Does KBR, Inc pay a dividend?
KBR, Inc currently shows a dividend yield of about 1.85% relative to its recent price (as of Jul 17, 2026).

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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