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KB HOME (KBH)

Operative Builders ยท Industrials ยท $3.4B

undervalued
Intrinsic Value (Consensus)
$80.90
Current Price
$53.84
Margin of Safety
+50.3%
50.3% Below Intrinsic Value
Value: $81
Price: $54

Valuation Model Estimates

Current Price: $53.84
DCF (Discounted Cash Flow)
$52.59
Graham Number
$88.28
Earnings Power Value
$59.71
Relative Value (P/E)
$123.00
Dividend Discount Model
$3.01
Consensus Value
$80.90

Model Assumptions

Discount Rate
10.3%
Growth Rate
2.0%
Terminal Growth
2.5%
Risk-Free Rate
4.3%

Discount rate derived from CAPM (risk-free rate + beta ร— market risk premium). Growth rate based on trailing earnings growth, capped at 20%.

Health Score

C
61
Profitability
18/25
Strength
17/25
Valuation
22/25
Growth
4/25

Financial Health Signals

Declining revenue โ€” top line is shrinking
High free cash flow yield (8.4%) โ€” generating lots of cash relative to price

Key Financials

EPS (TTM)
$6.15
EPS (Forward)
$6.27
Book Value
$56.33
P/E Ratio
20.0
Forward P/E
19.6
PEG Ratio
โ€”
ROE
11.0%
Debt/Equity
โ€”
Revenue Growth
-10.0%
Earnings Growth
2.0%
Dividend Yield
0.2%
Beta
1.00

Data last updated: 2026-06-16

Source: Yahoo Finance