Risk factor
Strong trading liquidity
Profitability factor
Undervalued vs peers
About
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 condominiums. It serves a diverse clientele, including individuals purchasing their first home, those seeking their first or second upgrade, and active adult homebuyers. Beyond its core building activities, KB Home also extends financial services, offering products such as insurance and title processing. Its operational reach spans numerous states, including Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas, and Washington. Founded in 1957, the company was initially known as Kaufman and Broad Home Corporation before officially adopting the name KB Home in January 2001, with its corporate headquarters located in Los Angeles, California.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITDA
Target Price
The average target price of KBH is 52 and suggests 5% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decreas