KB Home

Valuation Analysis

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. 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 Janua

KB Home Stock at a Glance

KB Home (KBH) is currently trading at $54.00 with a market capitalization of $3.4B. The trailing P/E ratio stands at 10.42x, with a forward P/E of 12.14x. The 52-week range spans from $44.03 to $68.71; the current price is 21.4% below the yearly high. Year-over-year revenue growth stands at -22.6%. The net profit margin stands at 5.96%.

💰 Dividend

KB Home pays an annual dividend of $1.00 per share, representing a yield of 1.85%. The payout ratio stands at 19.31%.

📊 Analyst Rating

13 analysts rate KB Home (KBH) on consensus: Hold. The average price target is $55.15, implying +2.14% from the current price. Analyst price targets range from $43.00 to $77.00.

KB Home: The Investment Case in Detail

KB Home (KBH) operates in the Consumer Cyclical — specifically Residential Construction — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -22.6% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Short interest sits at 17.55% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

At a PEG of 5.97, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (17.55%).

Trading Data

💵 Dividend Info

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