KBH

KB Home

Consumer Cyclical · $3.0B market cap

Verdict

Share price

$45.75

close of Oct 3, 2026

Fair value

$35.29

Sticker Price

Payback Price

$14.11

buy price

Overpriced

KBH is Overpriced: at $45.75 it trades 30% above its fair value of $35.29. Its buy price (Payback Price) is $14.11, 69% below today's price. Business quality is mixed: 2 of 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew -3% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

2 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth22.6% a year✓
Equity per share growth11.4% a year✓
Sales growth8.7% a year✗
Free cash flow growth-1.7% a year✗
Return on invested capital9.0%✗

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Insider activity

Since Jul 13, 2026: no open-market purchases, 9 sales worth $17.9M and 4 other filings (stock awards, tax withholding and similar). Why purchases matter

Sales

Other filings

About KB Home

KB Home functions as a prominent residential construction enterprise across the United States. Its operations are strategically divided into four key geographical areas: the West Coast, Southwest, Central, and Southeast regions. The company is engaged in both constructing and selling a wide range of housing types, from attached and detached single-family dwellings to multi-family options like townhouses and…

Residential Construction

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works