11.5% Below Target

KB Home (KBH) has a consensus 12-month price target of $60.43, implying 11.5% upside from $54.2. The 43 analysts covering KBH see moderate appreciation potential.

KBH has a consensus rating of "Hold" based on 43 Wall Street analysts. The rating breakdown is mixed, with 28 Hold ratings making up the largest segment. The consensus 12-month price target of $60.43 implies 11.5% upside from current levels.

With a forward P/E of 16.8868x, KBH trades at a relatively low valuation. The consensus target of $60.43 implies 11.5% appreciation, suggesting meaningful undervaluation.

The most bullish Wall Street analyst has a price target of $71 for KBH, while the most conservative target is $50. The consensus of $60.43 represents the median expectation. Our quantitative valuation model projects a bull case target of $83 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

KBH is heavily covered by Wall Street, with 43 analysts providing price targets and ratings. Of these, 1 have Strong Buy ratings, 8 have Buy ratings, 28 recommend Hold, and 6 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month KBH stock forecast based on 43 Wall Street analysts shows a consensus price target of $60.43, with estimates ranging from $50 (bear case) to $71 (bull case). The median consensus rating is "Hold". Our proprietary valuation model produces a base case fair value of $63, with bear/bull scenarios of $40/$83.

Our quantitative valuation model calculates KBH's fair value at $63 (base case), with a bear case of $40 and bull case of $83. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 45/100.

KBH trades at a forward P/E ratio of 16.9x based on next-twelve-months earnings estimates compared to a trailing P/E of 8.8x. The higher forward P/E suggests near-term earnings pressure. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Wall Street analysts are optimistic on KBH, with a "Hold" consensus rating and $60.43 price target (11.5% upside). 9 of 43 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

KBH analyst price targets range from $50 to $71, a 35% moderate spread showing some variance in outlooks. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $60.43 consensus represents the middle ground. Our model's $40-$83 range provides an independent fundamental perspective.