Latest Ratios: P/E Ratio 9.5x · EV/EBITDA 9.2x · 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 | $3.7B | $4.5B | $6.4B | $4.3B | $2.8B | $3.7B | $3.3B | $3.2B | $2.1B | $3.1B | $1.5B |
| Enterprise Value | $5.2B | $6.0B | $7.5B | $5.3B | $4.8B | $5.2B | $4.4B | $4.5B | $3.6B | $4.7B | $3.6B |
| P/E Ratio → | 9.54 | 10.46 | 9.79 | 7.41 | 3.45 | 6.65 | 11.25 | 12.13 | 12.49 | 17.04 | 14.40 |
| P/S Ratio | 0.59 | 0.71 | 0.92 | 0.68 | 0.41 | 0.65 | 0.79 | 0.71 | 0.47 | 0.71 | 0.42 |
| P/B Ratio | 1.04 | 1.14 | 1.57 | 1.14 | 0.77 | 1.24 | 1.24 | 1.36 | 1.02 | 1.60 | 0.89 |
| P/FCF | 12.80 | 15.51 | 19.69 | 4.15 | 20.30 | — | 11.75 | 15.41 | 9.96 | 6.10 | 8.29 |
| P/OCF | 10.95 | 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 | 9.21 | 10.59 | 9.09 | 6.85 | 4.46 | 7.49 | 12.80 | 12.66 | 10.39 | 16.38 | 22.89 |
| EV / EBIT | 9.86 | 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 | 1.7% | 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 | 10.5% | 9.6% | 10.2% | 13.5% | 29.0% | 15.0% | 8.9% | 8.2% | 8.0% | 5.9% | 6.9% |
| FCF Yield | 7.8% | 6.4% | 5.1% | 24.1% | 4.9% | — | 8.5% | 6.5% | 10.0% | 16.4% | 12.1% |
| Buyback Yield | 14.7% | 12.2% | 5.6% | 9.5% | 5.3% | 5.0% | 0.5% | 0.0% | 1.6% | 0.2% | 5.8% |
| Total Shareholder Yield | 16.4% | 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 |
Margin erosion from incentives
According to recent market data, KBH trades at a forward P/E of 18.74, which appears elevated relative to its TTM P/E of 10.10, suggesting that investors are pricing in a significant contraction in near-term earnings as the company navigates a challenging housing market environment.
The current P/S ratio of 0.62 indicates that the market is applying a discount to KBH's revenue, likely reflecting the inherent risks of its Built-to-Order model during periods of high interest rates. This valuation gap compared to larger, spec-heavy peers suggests that the market remains skeptical of the company's ability to maintain margins without aggressive price concessions.
Based on reported financial figures, KBH's ROIC has compressed to 0.5% in 2026Q1 from a peak of 3.3% in 2024Q4, indicating that the company is struggling to generate adequate returns on its invested capital as revenue growth stalls and operating costs remain sticky.
The decline in ROE to 0.9% highlights the difficulty of compounding capital in a high-rate environment where the company's personalized build process requires significant upfront investment. Investors should monitor whether this decay in returns is a temporary cyclical trough or a sign that the current operational model is becoming structurally inefficient.
As reported in recent quarterly filings, KBH's cash conversion cycle has ballooned to 561 days in 2026Q1, a significant increase from 317 days in 2024Q4, which reveals substantial inefficiencies in managing inventory and construction timelines during this period of cooling demand.
The sharp rise in days inventory outstanding to 563 days suggests that the Built-to-Order model is creating a bottleneck, as homes remain in the construction pipeline for longer periods. This extended cycle time ties up capital and increases exposure to potential cost overruns, further pressuring the company's ability to generate free cash flow.
According to the latest financial statements, KBH's debt-to-EBITDA ratio has surged to 41.32 in 2026Q1 from 7.03 in 2024Q4, indicating that the company's ability to service its debt obligations is becoming increasingly constrained as operating income faces significant downward pressure.
While the debt-to-equity ratio remains relatively stable at 0.50, the deterioration in interest coverage metrics warrants close investigation. The company's reliance on debt to fund operations during this downturn may limit its flexibility if market conditions do not improve in the coming quarters.
The price-to-book ratio is frequently misapplied to KBH, as it fails to account for the fact that the company's most valuable assets are often optioned land rather than owned inventory, which obscures the true economic value of its land-light growth strategy.
Investors should prioritize return on invested capital and cash flow generation over book value, as the latter is heavily influenced by accounting conventions regarding inventory valuation. Relying on P/B may lead to an underestimation of the company's operational flexibility and its ability to pivot its land strategy in response to market shifts.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KBH stock.
KB Home's current P/E ratio is 9.5x. The historical average is 10.7x. This places it at the 52th percentile of its historical range.
KB Home's current EV/EBITDA is 9.2x. 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 9.5x. This is at the 52th 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 1.69% 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.