KB Home Valuation
| KBH Stock | USD 65.61 2.92 4.66% |
At this time, the entity appears to be overvalued. KB Home owns a latest Real Value of $54.79 per share. The recent price of the entity is $65.61. Our model forecasts the value of KB Home from analyzing the entity fundamentals such as Shares Owned By Insiders of 12.03 %, return on asset of 0.0732, and Profit Margin of 0.09 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued equities and trading away overvalued equities since, sooner or later, asset prices and their ongoing real values will come together. Key fundamental drivers impacting KB Home's valuation include:
Price Book 1.2533 | Enterprise Value 5.8 B | Enterprise Value Ebitda 7.5771 | Price Sales 0.7493 | Forward PE 8.2305 |
Overvalued
Today
Please note that KB Home's price fluctuation is very steady at this time. Calculation of the real value of KB Home is based on 3 months time horizon. Increasing KB Home's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for KB Home is useful when determining the fair value of the KBH stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of KB Home. Since KB Home is currently traded on the exchange, buyers and sellers on that exchange determine the market value of KBH Stock. However, KB Home's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 65.61 | Real 54.79 | Target 55.08 | Hype 65.61 | Naive 65.28 |
The real value of KBH Stock, also known as its intrinsic value, is the underlying worth of KB Home Company, which is reflected in its stock price. It is based on KB Home's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of KB Home's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence KB Home's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of KB Home helps investors to forecast how KBH stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of KB Home more accurately as focusing exclusively on KB Home's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use KB Home's intrinsic value based on its ongoing forecasts of KB Home's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against KB Home's closest peers. When choosing an evaluation method for KB Home, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
KB Home Investments |
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KBH Valuation Trend
Knowing KB Home's actual value is paramount for traders to make sound investment determinations. KB Home's real value is not only important for the investor to make better decisions but also for a more accurate overall view of KB Home's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both KB Home's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
KBH Market Cap
KB Home is rated below average in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is now estimated at about 170.72 Billion. KB Home holds roughly 4.98 Billion in market capitalization claiming about 2.92% of stocks in Consumer Discretionary industry.KB Home Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining KB Home's current stock value. Our valuation model uses many indicators to compare KB Home value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across KB Home competition to find correlations between indicators driving KB Home's intrinsic value. More Info.KB Home is rated fourth overall in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.14 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for KB Home is roughly 6.99 . The KB Home's current Price To Book Ratio is estimated to increase to 1.64. Comparative valuation analysis is a catch-all model that can be used if you cannot value KB Home by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for KB Home's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the KB Home's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates KB Home's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in KB Home and how it compares across the competition.
About KB Home Valuation
The stock valuation mechanism determines the current worth of KB Home on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of KB Home. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of KB Home based exclusively on its fundamental and basic technical indicators. By analyzing KB Home's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of KB Home's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of KB Home. We calculate exposure to KB Home's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to KB Home's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 7.3 B | 7.7 B | |
| Pretax Profit Margin | 0.14 | 0.15 | |
| Operating Profit Margin | 0.13 | 0.14 | |
| Net Profit Margin | 0.08 | 0.09 | |
| Gross Profit Margin | 0.25 | 0.20 |
KB Home Quarterly Retained Earnings |
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8 Steps to conduct KB Home's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates KB Home's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct KB Home's valuation analysis, follow these 8 steps:- Gather financial information: Obtain KB Home's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine KB Home's revenue streams: Identify KB Home's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research KB Home's industry and market trends, including the size of the market, growth rate, and competition.
- Establish KB Home's growth potential: Evaluate KB Home's management, business model, and growth potential.
- Determine KB Home's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate KB Home's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of KB Home represents a small ownership stake in the entity. As a stockholder of KBH, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
KB Home Dividends Analysis For Valuation
As of now, KB Home's Dividend Yield is decreasing as compared to previous years. The KB Home's current Dividend Payout Ratio is estimated to increase to 0.15, while Dividends Paid is projected to decrease to under 32.8 M. . As of now, KB Home's Retained Earnings are increasing as compared to previous years. The KB Home's current Retained Earnings Total Equity is estimated to increase to about 3.8 B, while Price Earnings Ratio is projected to decrease to 7.96.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 65.4 M | 32.8 M | |
| Dividend Yield | 0.02 | 0.03 | |
| Dividend Payout Ratio | 0.11 | 0.15 | |
| Dividend Paid And Capex Coverage Ratio | 45.61 | 47.89 |
There are various types of dividends KB Home can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of KBH shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from KB Home directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When KBH pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of KB Home by the value of the dividends paid out.
KB Home Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as KB Home does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 83.4 M | |
| Quarterly Earnings Growth Y O Y | 0.213 | |
| Forward Price Earnings | 8.2305 |
KB Home Current Valuation Indicators
Valuation refers to the process of determining the present value of KB Home and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value KBH we look at many different elements of the entity such as KBH's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. KB Home's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final KB Home's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as KB Home, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use KB Home's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes KB Home's worth.When determining whether KB Home offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of KB Home's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Kb Home Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Kb Home Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KB Home. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. For more detail on how to invest in KBH Stock please use our How to Invest in KB Home guide.Note that the KB Home information on this page should be used as a complementary analysis to other KB Home's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Complementary Tools for KBH Stock analysis
When running KB Home's price analysis, check to measure KB Home's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KB Home is operating at the current time. Most of KB Home's value examination focuses on studying past and present price action to predict the probability of KB Home's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KB Home's price. Additionally, you may evaluate how the addition of KB Home to your portfolios can decrease your overall portfolio volatility.
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Is KB Home's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KB Home. If investors know KBH will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KB Home listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.213 | Dividend Share 0.75 | Earnings Share 7.34 | Revenue Per Share 82.257 | Quarterly Revenue Growth 0.06 |
The market value of KB Home is measured differently than its book value, which is the value of KBH that is recorded on the company's balance sheet. Investors also form their own opinion of KB Home's value that differs from its market value or its book value, called intrinsic value, which is KB Home's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KB Home's market value can be influenced by many factors that don't directly affect KB Home's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between KB Home's value and its price as these two are different measures arrived at by different means. Investors typically determine if KB Home is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KB Home's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.