Relative Value

The Relative Value of one KBH stock under the Base Case scenario is 80.35 USD. Compared to the current market price of 62.03 USD, KB Home is Undervalued by 23%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

KBH Relative Value
Base Case
80.35 USD
Undervaluation 23%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
60
vs Industry
62
Median 3Y
0.6
Median 5Y
0.6
Industry
1.1
Forward
0.6
vs History
42
vs Industry
56
Median 3Y
7.3
Median 5Y
7.3
Industry
18
Forward
9.7
vs History
39
vs Industry
33
Median 3Y
9.7
Median 5Y
5.8
Industry
11.6
vs History
60
vs Industry
32
Median 3Y
8.9
Median 5Y
8.9
Industry
15.3
vs History
63
vs Industry
55
Median 3Y
1.1
Median 5Y
1.2
Industry
1.6
vs History
52
vs Industry
57
Median 3Y
0.8
Median 5Y
0.9
Industry
1.2
Forward
0.9
vs History
55
vs Industry
44
Median 3Y
4.4
Median 5Y
4.4
Industry
3.9
vs History
39
vs Industry
48
Median 3Y
7.3
Median 5Y
7.5
Industry
10.4
Forward
8.4
vs History
38
vs Industry
52
Median 3Y
7.6
Median 5Y
7.9
Industry
13.3
Forward
9.3
vs History
36
vs Industry
28
Median 3Y
11.6
Median 5Y
8.6
Industry
12.3
vs History
36
vs Industry
27
Median 3Y
12.4
Median 5Y
9.4
Industry
15.3
vs History
65
vs Industry
50
Median 3Y
0.9
Median 5Y
1
Industry
1.2

Multiples Across Competitors

KBH Competitors Multiples
KB Home Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
US
KB Home
NYSE:KBH
4B USD 0.6 7.8 8.4 8.9
US
D R Horton Inc
NYSE:DHI
44.6B USD 1.3 12.4 9.6 9.8
US
DR Horton Inc
XMUN:HO2
27.4B EUR 1 9.2 7 7.2
US
Lennar Corp
NYSE:LEN
30.6B USD 0.9 11.6 9 9.3
US
Pultegroup Inc
NYSE:PHM
24.4B USD 1.4 9.3 7.1 7.3
US
NVR Inc
NYSE:NVR
21.3B USD 2 14.8 10.6 10.7
JP
Sekisui House Ltd
TSE:1928
2.2T JPY 0.5 11.1 10.8 12.3
US
Toll Brothers Inc
NYSE:TOL
12.8B USD 1.2 9.6 8 8.4
US
TopBuild Corp
NYSE:BLD
12.2B USD 2.3 21.5 13.7 16.1
UK
Barratt Developments P L C
LSE:BDEV
6.8B GBP 1.6 31.3 11.4 12.1
US
Installed Building Products Inc
NYSE:IBP
7.3B USD 2.4 28.4 16.9 20.6
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
KB Home
NYSE:KBH
Average EV/EBITDA: 10.2
8.4
-8%
N/A
US
D R Horton Inc
NYSE:DHI
9.6
9%
1.1
US
D
DR Horton Inc
XMUN:HO2
7
9%
0.8
US
Lennar Corp
NYSE:LEN
9
-11%
N/A
US
Pultegroup Inc
NYSE:PHM
7.1
-8%
N/A
US
NVR Inc
NYSE:NVR
10.6
-9%
N/A
JP
Sekisui House Ltd
TSE:1928
10.8
7%
1.5
US
Toll Brothers Inc
NYSE:TOL
8
-2%
N/A
US
TopBuild Corp
NYSE:BLD
13.7
6%
2.3
UK
Barratt Developments P L C
LSE:BDEV
11.4
-6%
N/A
US
Installed Building Products Inc
NYSE:IBP
16.9
3%
5.6
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
KB Home
NYSE:KBH
Average EV/EBIT: 11.1
8.9
-8%
N/A
US
D R Horton Inc
NYSE:DHI
9.8
8%
1.2
US
D
DR Horton Inc
XMUN:HO2
7.2
8%
0.9
US
Lennar Corp
NYSE:LEN
9.3
-11%
N/A
US
Pultegroup Inc
NYSE:PHM
7.3
-8%
N/A
US
NVR Inc
NYSE:NVR
10.7
-9%
N/A
JP
Sekisui House Ltd
TSE:1928
12.3
N/A N/A
US
Toll Brothers Inc
NYSE:TOL
8.4
-2%
N/A
US
TopBuild Corp
NYSE:BLD
16.1
4%
4
UK
Barratt Developments P L C
LSE:BDEV
12.1
-6%
N/A
US
Installed Building Products Inc
NYSE:IBP
20.6
4%
5.1