Latest Ratios: P/E Ratio 7.7x · EV/EBITDA 7.9x · ROE 10.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.0B | $4.5B | $6.4B | $4.3B | $2.8B | $3.7B | $3.3B | $3.2B | $2.1B | $3.1B | $1.5B |
| Enterprise Value | $4.5B | $6.0B | $7.5B | $5.3B | $4.8B | $5.2B | $4.4B | $4.5B | $3.6B | $4.7B | $3.6B |
| P/E Ratio → | 7.67 | 10.46 | 9.79 | 7.41 | 3.45 | 6.65 | 11.25 | 12.13 | 12.49 | 17.04 | 14.40 |
| P/S Ratio | 0.47 | 0.71 | 0.92 | 0.68 | 0.41 | 0.65 | 0.79 | 0.71 | 0.47 | 0.71 | 0.42 |
| P/B Ratio | 0.84 | 1.14 | 1.57 | 1.14 | 0.77 | 1.24 | 1.24 | 1.36 | 1.02 | 1.60 | 0.89 |
| P/FCF | 10.28 | 15.51 | 19.69 | 4.15 | 20.30 | — | 11.75 | 15.41 | 9.96 | 6.10 | 8.29 |
| P/OCF | 8.80 | 13.27 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 7.92 | 10.59 | 9.09 | 6.85 | 4.46 | 7.49 | 12.80 | 12.66 | 10.39 | 16.38 | 22.89 |
| EV / EBIT | 8.48 | 10.75 | 8.79 | 6.91 | 4.52 | 7.64 | 13.46 | 13.27 | 10.19 | 16.13 | 23.01 |
| EV / FCF | — | 20.74 | 23.13 | 5.09 | 35.08 | — | 15.66 | 21.55 | 16.90 | 9.28 | 19.43 |
Margins and return-on-capital ratios measuring operating efficiency
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 | 18.8% | 18.8% | 21.2% | 21.4% | 24.4% | 21.8% | 19.2% | 18.4% | 17.6% | 16.5% | 15.3% |
| Operating Margin | 8.4% | 8.4% | 11.3% | 11.6% | 15.3% | 11.6% | 7.6% | 7.3% | 7.6% | 6.5% | 4.2% |
| 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% |
| 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% | 11.8% | 10.6% | 15.6% | 12.1% | 6.4% | 6.9% | 7.3% | 5.8% | 3.0% |
| ROCE | 9.3% | 9.3% | 13.4% | 13.1% | 19.8% | 13.5% | 6.9% | 7.5% | 7.8% | 6.2% | 3.3% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 3.08 | 3.08 | 2.08 | 2.20 | 2.18 | 2.48 | 5.18 | 4.88 | 5.92 | 8.12 | 16.92 |
| 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 | 2.67 | 2.67 | 1.35 | 1.27 | 1.88 | 2.06 | 3.20 | 3.61 | 4.26 | 5.60 | 13.12 |
| Debt / FCF | — | 5.23 | 3.44 | 0.94 | 14.79 | — | 3.91 | 6.14 | 6.94 | 3.18 | 11.13 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | 467.23 | 26.31 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | 1.05 | 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 2.1% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.0% | 9.6% | 10.2% | 13.5% | 29.0% | 15.0% | 8.9% | 8.2% | 8.0% | 5.9% | 6.9% |
| FCF Yield | 9.7% | 6.4% | 5.1% | 24.1% | 4.9% | — | 8.5% | 6.5% | 10.0% | 16.4% | 12.1% |
| Buyback Yield | 18.3% | 12.2% | 5.6% | 9.5% | 5.3% | 5.0% | 0.5% | 0.0% | 1.6% | 0.2% | 5.8% |
| Total Shareholder Yield | 20.4% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying KBH stock.
KB Home's current P/E ratio is 7.7x. The historical average is 10.7x. This places it at the 39th percentile of its historical range.
KB Home's current EV/EBITDA is 7.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
KB Home's return on equity (ROE) is 10.8%. The historical average is 8.6%.
Based on historical data, KB Home is trading at a P/E of 7.7x. This is at the 39th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
KB Home's current dividend yield is 2.10% with a payout ratio of 16.0%.
KB Home has 18.8% gross margin and 8.4% operating margin.
KB Home's Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Persistent revenue and margin compression
Metrics are mathematically derived from official filings.
Margin Compression Accelerates
According to recent financial statements, KB Home's gross margin fell to 15.6% in 2026Q2 from 21.8% in 2024Q1, while operating margin dropped to 2.9%, reflecting severe pricing pressure and cost inflation.
The sequential decline in gross margin from 17.3% in 2025Q4 to 15.6% in 2026Q2 indicates that pricing power is eroding faster than cost reductions can offset. Operating margin compression is more pronounced, falling from 11.7% in 2024Q4 to 2.9% in 2026Q2, suggesting that SG&A leverage has reversed as revenue declines. This margin trajectory implies that KB Home's earning power is deteriorating, and the current net margin of 2.5% is well below the peer average of roughly 10%, highlighting a structural disadvantage in the current housing downturn.
Returns Decay Amid Downturn
Based on reported figures, KB Home's ROIC fell to 0.4% in 2026Q2 from 3.3% in 2024Q4, while ROE dropped to 0.7% from 4.7%, indicating a sharp decline in capital efficiency.
The collapse in ROIC and ROE is driven by both margin compression and a slowdown in asset turnover, which fell from 0.29x in 2024Q4 to 0.17x in 2026Q2. This suggests that the company is generating significantly less profit per dollar of invested capital, and the trend appears to be worsening. The low returns are consistent with a cyclical trough, but the pace of decay warrants monitoring; if returns do not stabilize, the company may struggle to justify its current capital base.
Working Capital Cycle Stretches
As reported in financial statements, KB Home's cash conversion cycle ballooned to 563 days in 2026Q2 from 317 days in 2024Q4, driven by a surge in days inventory outstanding to 561 days.
The dramatic increase in DIO from 322 days in 2024Q4 to 561 days in 2026Q2 indicates that inventory is turning over much more slowly, reflecting weak demand and potential overbuilding. While DSO and DPO have remained relatively stable, the inventory build is consuming cash and stretching the cash conversion cycle to extreme levels. This suggests that KB Home is holding land and homes for longer periods, which increases carrying costs and raises the risk of inventory write-downs if prices continue to fall.
Debt Burden Intensifies
According to recent balance sheet data, KB Home's debt-to-equity ratio rose to 0.52 in 2026Q2 from 0.42 in 2024Q4, while debt-to-EBITDA jumped to 45.32 from 7.03, signaling a sharp deterioration in leverage metrics.
The surge in D/EBITDA from 7.03x in 2024Q4 to 45.32x in 2026Q2 is alarming, though it is partly due to depressed EBITDA. Total debt increased to $2.0B, while cash declined to $199.8M, reducing the net debt cushion. Interest coverage data is unavailable, but the elevated leverage suggests that debt service is becoming less comfortable, and the company may face refinancing risk if earnings do not recover. Investors should monitor whether KB Home can generate sufficient cash flow to service its debt obligations.
Liquidity Cushion Thins
Based on reported figures, KB Home's current ratio remains high at 6.27 in 2026Q2, but the quick ratio fell to 0.58, and cash dropped to $199.8M from $599.2M in 2024Q4, indicating a shrinking liquidity buffer.
The high current ratio is misleading because it is driven by inventory, which is slow-moving and potentially overvalued. The quick ratio of 0.58 reveals that liquid assets are insufficient to cover current liabilities, and the declining cash balance suggests that the company is relying on inventory to meet short-term obligations. Under severe stress, such as a prolonged housing downturn, KB Home may face liquidity constraints if it cannot convert inventory to cash quickly.
Misapplied P/E Ratio
The trailing P/E of 9.39 appears cheap, but it is distorted by depressed earnings; the forward P/E of 17.35 better reflects the market's expectation of continued earnings decline, making the ratio misleading for cyclical homebuilders.
For homebuilders, trailing P/E is often misleading because it uses peak earnings, while forward P/E may overstate recovery. A more appropriate metric is price-to-book (P/B), which at 1.02 suggests the stock is trading near book value, but this may not account for potential inventory write-downs. Investors should use EV/EBITDA or price-to-tangible book value, adjusting for the cyclicality of earnings and the risk of asset impairment. The current P/B of 1.02 implies that the market is pricing in a significant decline in asset values, which may or may not materialize.