KB Home (KBH) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Residential Construction
EV/EBITDA
↑
8.70
+14% vs avg
5yr avg: 7.62
30Y Low4.5·High33.5
P/FCF
↓
11.80
↓-21% vs avg
5yr avg: 14.87
30Y Low1.3·High38.8
P/B Ratio
↓
0.96
↓-18% vs avg
5yr avg: 1.17
30Y Low0.8·High3.0
ROE
↓
10.8%
↑-38% vs avg
5yr avg: 17.5%
30Y Low-73%·High86%
Debt/EBITDA
↑
3.06
↑+28% vs avg
5yr avg: 2.38
30Y Low1.8·High22.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
KBH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
KB Home trades at 8.8x earnings, 17% above its 5-year average of 7.6x, sitting at the 48th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a discount of 58%. On a free-cash-flow basis, the stock trades at 11.8x P/FCF, 21% below the 5-year average of 14.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.4B | $4.5B | $6.4B | $4.3B | $2.8B | $3.7B | $3.3B | $3.2B | $2.1B | $3.1B | $1.5B |
| Enterprise Value | $4.9B | $6.0B | $7.5B | $5.3B | $4.8B | $5.2B | $4.4B | $4.5B | $3.6B | $4.7B | $3.6B |
| P/E Ratio → | 8.81 | 10.46 | 9.79 | 7.41 | 3.45 | 6.65 | 11.25 | 12.13 | 12.49 | 17.04 | 14.40 |
| P/S Ratio | 0.55 | 0.71 | 0.92 | 0.68 | 0.41 | 0.65 | 0.79 | 0.71 | 0.47 | 0.71 | 0.42 |
| P/B Ratio | 0.96 | 1.14 | 1.57 | 1.14 | 0.77 | 1.24 | 1.24 | 1.36 | 1.02 | 1.60 | 0.89 |
| P/FCF | 11.80 | 15.35 | 19.69 | 4.15 | 20.30 | — | 11.75 | 15.41 | 9.96 | 6.10 | 8.29 |
| P/OCF | 10.11 | 13.16 | 17.55 | 4.01 | 15.29 | — | 10.66 | 12.93 | 9.63 | 6.01 | 8.08 |
P/E links to full P/E history page with 30-year chart
KBH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
KB Home's enterprise value stands at 8.7x EBITDA, 14% above its 5-year average of 7.6x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 29% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.96 | 1.08 | 0.83 | 0.70 | 0.90 | 1.06 | 1.00 | 0.80 | 1.07 | 0.99 |
| EV / EBITDA | 8.70 | 10.52 | 9.04 | 6.75 | 4.46 | 7.33 | 11.97 | 12.18 | 10.12 | 15.89 | 21.79 |
| EV / EBIT | 9.38 | 10.75 | 8.79 | 6.91 | 4.52 | 7.43 | 12.13 | 13.04 | 9.83 | 16.13 | 23.01 |
| EV / FCF | — | 20.52 | 23.13 | 5.09 | 35.08 | — | 15.66 | 21.55 | 16.90 | 9.28 | 19.43 |
KBH Profitability
Margins and return-on-capital ratios measuring operating efficiency
KB Home earns an operating margin of 8.4%, above the Consumer Cyclical sector average of 2.0%. Operating margins have compressed from 11.8% to 8.4% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 10.8% is modest. ROIC of 7.4% represents adequate returns on invested capital versus a sector median of 5.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 18.9% | 18.9% | 21.4% | 21.7% | 24.5% | 21.9% | 19.3% | 18.6% | 17.7% | 16.5% | 15.4% |
| Operating Margin | 8.4% | 8.4% | 11.4% | 11.8% | 15.3% | 11.8% | 8.1% | 7.6% | 7.8% | 6.7% | 4.5% |
| Net Profit Margin | 6.9% | 6.9% | 9.5% | 9.2% | 11.8% | 9.9% | 7.1% | 5.9% | 3.7% | 4.1% | 2.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.8% | 10.8% | 16.6% | 15.8% | 24.5% | 19.9% | 11.7% | 12.0% | 8.5% | 9.9% | 6.2% |
| ROA | 6.3% | 6.3% | 9.6% | 8.9% | 13.1% | 10.1% | 5.7% | 5.3% | 3.4% | 3.6% | 2.1% |
| ROIC | 7.4% | 7.4% | 11.9% | 10.8% | 15.6% | 12.4% | 6.9% | 7.1% | 7.5% | 6.0% | 3.2% |
| ROCE | 9.3% | 9.3% | 13.5% | 13.3% | 19.8% | 13.8% | 7.4% | 7.8% | 8.0% | 6.4% | 3.5% |
KBH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
KB Home carries a Debt/EBITDA ratio of 3.1x, which is moderately leveraged (36% below the sector average of 4.8x). Net debt stands at $1.5B ($1.7B total debt minus $230M cash).
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.44 | 0.44 | 0.42 | 0.45 | 0.65 | 0.57 | 0.67 | 0.73 | 0.99 | 1.21 | 1.53 |
| Debt / EBITDA | 3.06 | 3.06 | 2.07 | 2.17 | 2.18 | 2.43 | 4.84 | 4.69 | 5.76 | 7.88 | 16.11 |
| Net Debt / Equity | — | 0.39 | 0.27 | 0.26 | 0.56 | 0.47 | 0.41 | 0.54 | 0.71 | 0.83 | 1.19 |
| Net Debt / EBITDA | 2.65 | 2.65 | 1.35 | 1.25 | 1.88 | 2.02 | 2.99 | 3.47 | 4.15 | 5.44 | 12.49 |
| Debt / FCF | — | 5.18 | 3.44 | 0.94 | 14.79 | — | 3.91 | 6.14 | 6.94 | 3.18 | 11.13 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | 469.84 | 27.17 |
KBH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
KB Home's current ratio of 4.57x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 0.44x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 6.87x to 4.57x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.57 | 4.57 | 6.97 | 6.87 | 5.79 | 6.96 | 7.88 | 7.30 | 6.82 | 7.75 | 8.49 |
| Quick Ratio | 0.44 | 0.44 | 1.07 | 1.22 | 0.63 | 0.78 | 1.57 | 1.18 | 1.34 | 1.78 | 1.67 |
| Cash Ratio | 0.17 | 0.17 | 0.64 | 0.80 | 0.31 | 0.38 | 1.10 | 0.75 | 0.88 | 1.32 | 1.19 |
| Asset Turnover | — | 0.93 | 1.00 | 0.96 | 1.04 | 0.98 | 0.78 | 0.91 | 0.90 | 0.87 | 0.70 |
| Inventory Turnover | 0.89 | 0.89 | 0.99 | 0.98 | 0.94 | 0.93 | 0.87 | 1.00 | 1.04 | 1.12 | 0.89 |
| Days Sales Outstanding | — | 20.85 | 20.17 | 21.05 | 17.25 | 19.53 | 23.96 | 20.15 | 23.74 | 20.55 | 23.70 |
KBH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
KB Home returns 17.6% to shareholders annually — split between a 1.8% dividend yield and 15.8% buyback yield. The payout ratio of 16.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 11.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.5% | 1.1% | 1.3% | 1.9% | 1.4% | 1.1% | 0.6% | 0.4% | 0.3% | 0.6% |
| Payout Ratio | 16.0% | 16.0% | 10.9% | 9.6% | 6.4% | 9.6% | 12.8% | 7.6% | 5.2% | 4.8% | 8.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.3% | 9.6% | 10.2% | 13.5% | 29.0% | 15.0% | 8.9% | 8.2% | 8.0% | 5.9% | 6.9% |
| FCF Yield | 8.5% | 6.5% | 5.1% | 24.1% | 4.9% | — | 8.5% | 6.5% | 10.0% | 16.4% | 12.1% |
| Buyback Yield | 15.8% | 12.2% | 5.6% | 9.5% | 5.3% | 5.0% | 0.5% | 0.0% | 1.6% | 0.2% | 5.8% |
| Total Shareholder Yield | 17.6% | 13.7% | 6.7% | 10.8% | 7.2% | 6.5% | 1.6% | 0.6% | 2.1% | 0.5% | 6.4% |
| Shares Outstanding | — | $69M | $77M | $83M | $89M | $94M | $94M | $94M | $101M | $98M | $96M |
Peer Comparison
Compare KBH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 KBHYou | $3B | 8.8 | 8.7 | 11.8 | 18.9% | 8.4% | 10.8% | 7.4% | 3.1 |
 DHI | $46B | 13.6 | 10.8 | 13.9 | 23.7% | 12.9% | 14.2% | 12.1% | 1.3 |
 LEN | $22B | 11.2 | 8.6 | 790.5 | 9.9% | 8.0% | 8.3% | 7.9% | 2.2 |
 PHM | $24B | 11.4 | 8.0 | 14.0 | 26.4% | 17.3% | 17.7% | 17.2% | 0.8 |
 TOL | $15B | 11.5 | 9.1 | 14.4 | 26.0% | 15.7% | 16.9% | 13.4% | 1.6 |
 NVR | $18B | 14.9 | 9.6 | 16.4 | 23.0% | 16.2% | 33.2% | 43.8% | 0.7 |
 MHO | $4B | 10.1 | 8.0 | 31.8 | 23.0% | 11.5% | 13.2% | 11.3% | 2.1 |
 TPH | $4B | 17.3 | 11.7 | 31.1 | 22.0% | 9.7% | 7.2% | 7.2% | 3.5 |
 TMHC | $7B | 9.2 | 7.2 | 8.3 | 23.0% | 14.0% | 12.8% | 11.0% | 2.1 |
 SKY | $5B | 22.8 | 15.6 | 17.0 | 26.4% | 9.5% | 13.7% | 17.6% | 0.4 |
 CVCO | $5B | 25.1 | 17.5 | 19.9 | 23.5% | 10.2% | 17.6% | 21.0% | 0.1 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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KBH — Frequently Asked Questions
Quick answers to the most common questions about buying KBH stock.
What is KB Home's P/E ratio?
KB Home's current P/E ratio is 8.8x. The historical average is 10.7x. This places it at the 48th percentile of its historical range.
What is KB Home's EV/EBITDA?
KB Home's current EV/EBITDA is 8.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.5x.
What is KB Home's ROE?
KB Home's return on equity (ROE) is 10.8%. The historical average is 8.6%.
Is KBH stock overvalued?
Based on historical data, KB Home is trading at a P/E of 8.8x. This is at the 48th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is KB Home's dividend yield?
KB Home's current dividend yield is 1.83% with a payout ratio of 16.0%.
What are KB Home's profit margins?
KB Home has 18.9% gross margin and 8.4% operating margin.
How much debt does KB Home have?
KB Home's Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.