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We have been building homes for nearly 70 years, with over 700,000 homes built since our founding in 1957. We build a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult, homebuyers.
$56.10
$1.71 (-2.96%)
EOD Jul 17, 2026
Revenue declined 10.0% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 11% versus the prior year, cash generation momentum has weakened.
13.6x earnings, 9.8x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$5.50B
▼ -10.0% YoY
Net Income (TTM)
$272M
▼ -34.5% YoY
Op. Margin
—
ROIC
—
Cash Flow & Balance Sheet
FCF (TTM)
$360M
▼ -11.2% YoY
Op. Cash Flow (TTM)
$408M
▼ -7.5% YoY
Net Debt
-$171M
Net Cash Position
Cash & Equiv.
$201M
5Y CAGR: +8.3%
5Y CAGR: +0.4%
Continue Research
At a P/E of 13.6 and a price-to-free-cash-flow of 9.8, KB Home (KBH) trades below a two-stage DCF intrinsic value of about $292.02 per share, so at $56.10 the stock looks undervalued (420.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, KB Home scores 59/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.8%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $292.02 per share for KBH, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $219.02. At today's $56.10, that puts the stock about 420.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
KB Home scores 59 out of 100 on Intrinsiqq's quality score, a weighted blend of 6 metrics each scored 0 to 100, which makes it a mixed business on these measures. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, KB Home pays a regular dividend of about $1.03 per share per year (typically in quarterly installments), a yield of roughly 1.8% at the current price. That is a payout ratio of about 23.8% of earnings, so the dividend is amply covered by earnings. KB Home has grown the dividend at roughly 6.1% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For KBH's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. KBH currently trades below its estimated intrinsic value and scores 59/100 on quality (mixed). It also yields about 1.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.