KBH Valuation

KB Home

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63.345

+0.465(0.740%)1D

Overview
Forecast
Valuation
Earnings

KBH Relative Valuation

KBH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KBH is overvalued; if below, it's undervalued.

Historical Valuation

KB Home (KBH) is now in the Fair zone, suggesting that its current forward PE ratio of 10.72 is considered Fairly compared with the five-year average of 6.82. The fair price of KB Home (KBH) is between 44.21 to 63.86 according to relative valuation methord.

Relative Value

Fair Zone

44.21-63.86

Current Price：62.88

Fair

10.72

Trailing

Forward

8.95

EV/EBITDA

KB Home. (KBH) has a current EV/EBITDA of 8.95. The 5-year average EV/EBITDA is 5.85. The thresholds are as follows: Strongly Undervalued below 3.00, Undervalued between 3.00 and 4.42, Fairly Valued between 7.27 and 4.42, Overvalued between 7.27 and 8.70, and Strongly Overvalued above 8.70. The current Forward EV/EBITDA of 8.95 falls within the Strongly Overvalued range.

12.67

EV/EBIT

KB Home. (KBH) has a current EV/EBIT of 12.67. The 5-year average EV/EBIT is 7.24. The thresholds are as follows: Strongly Undervalued below 3.34, Undervalued between 3.34 and 5.29, Fairly Valued between 9.20 and 5.29, Overvalued between 9.20 and 11.15, and Strongly Overvalued above 11.15. The current Forward EV/EBIT of 12.67 falls within the Strongly Overvalued range.

0.71

KB Home. (KBH) has a current PS of 0.71. The 5-year average PS is 0.61. The thresholds are as follows: Strongly Undervalued below 0.33, Undervalued between 0.33 and 0.47, Fairly Valued between 0.74 and 0.47, Overvalued between 0.74 and 0.88, and Strongly Overvalued above 0.88. The current Forward PS of 0.71 falls within the Historic Trend Line -Fairly Valued range.

10.37

P/OCF

KB Home. (KBH) has a current P/OCF of 10.37. The 5-year average P/OCF is 16.55. The thresholds are as follows: Strongly Undervalued below -60.93, Undervalued between -60.93 and -22.19, Fairly Valued between 55.29 and -22.19, Overvalued between 55.29 and 94.03, and Strongly Overvalued above 94.03. The current Forward P/OCF of 10.37 falls within the Historic Trend Line -Fairly Valued range.

8.19

P/FCF

KB Home. (KBH) has a current P/FCF of 8.19. The 5-year average P/FCF is 9.21. The thresholds are as follows: Strongly Undervalued below -1.93, Undervalued between -1.93 and 3.64, Fairly Valued between 14.79 and 3.64, Overvalued between 14.79 and 20.36, and Strongly Overvalued above 20.36. The current Forward P/FCF of 8.19 falls within the Historic Trend Line -Fairly Valued range.

KB Home (KBH) has a current Price-to-Book (P/B) ratio of 1.07. Compared to its 3-year average P/B ratio of 1.09 , the current P/B ratio is approximately -1.87% higher. Relative to its 5-year average P/B ratio of 1.15, the current P/B ratio is about -6.64% higher. KB Home (KBH) has a Forward Free Cash Flow (FCF) yield of approximately 1.51%. Compared to its 3-year average FCF yield of 11.02%, the current FCF yield is approximately -86.34% lower. Relative to its 5-year average FCF yield of 7.06% , the current FCF yield is about -78.69% lower.

1.07

P/B

Median3y

1.09

Median5y

1.15

1.51

FCF Yield

Median3y

11.02

Median5y

7.06

Competitors Valuation Multiple

The average P/S ratio for KBH's competitors is 1.31, providing a benchmark for relative valuation. KB Home Corp (KBH) exhibits a P/S ratio of 0.71, which is -45.66% above the industry average. Given its robust revenue growth of -10.54%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Patrick Industries Inc

0.97

3.04%

3.73B

Performance Decomposition

Market capitalization of KBH decreased by 24.88% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.26 to 8.28.

The secondary factor is the Revenue Growth, contributed -10.54%to the performance.

Overall, the performance of KBH in the past 1 year is driven by P/E Change. Which is more unsustainable.

-10.54%

1.71B → 1.53B

Revenue Growth

-28.43%

9.85 → 7.05

Margin Expansion

14.09%

7.26 → 8.28

P/E Change

-24.88%