KB Home (KBH) Fair Value 2026

KBH · Residential Construction ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

8.1 /10

32 fundamental signals · 12 models active

Value Trap Risk

SAFE (0/100)

Quick Summary — As of 2026-08-27, KB Home (KBH) trades at $54.72, versus a $73.99 median fair value across its 12 active models — 35.2% above the current price. QOC: 8.1/10. Value Trap Risk: 0/100 (SAFE). 12/13 models active. Within that set, the Bayesian DCF component alone returns $49.76.

Key Facts

Ticker
KBH
Price
$54.72
Quality Score
8.1/10
Value Trap Risk
0/100
Models Active
12/13
Last Updated
Strength: First Chicago suggests +362.8% upside with 48% confidence
Risk: Limited model coverage (12/13) may reduce confidence

Is KB Home (KBH) Undervalued or Overvalued in 2026?

According to CirclFi’s 12-model valuation engine, KB Home (KBH) appears undervalued as of : the median of 12 independent fair value estimates is $73.99, 35.2% above the current price of $54.72. Estimates range from $32.86 to $253.26. KBH scores 8.1/10 on fundamental quality and 0/100 on value-trap risk.

For context, the median US equity CirclFi rates trades at an implied -23.7% versus its own 13-model consensus, across 3,801 rated companies as of 2026-08-27. KBH’s +35.2% gap is wider than that market norm, and the Residential Construction sector median is -15.3%. Full market index →

This verdict compares price to intrinsic value only — it is not a buy or sell rating. For the decision case (bull vs bear arguments, risk factors, peers), read Should You Buy KB Home Stock in 2026? →

What Fair Value Does Each Model Give KBH?

12 Intrinsic Value Models vs. Current Price ($54.72)

Core Models (Unlocked)
Model Fair Value Upside
Intrinsic · High Conviction
 $49.76 -9.1%
Intrinsic · High Conviction
 $93.95 +71.7%
Ensemble · Low Conviction
 $71.01 +29.8%
Scenario · Medium Conviction
 $253.26 +362.8%
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What Is KBH's Fair Value Range?

Spread across 12 independent models · $32.86 to $253.26

CirclFi's 12 active models place KB Home (KBH) between $32.86 and $253.26 per share, a spread of 298% of the median. The median of that range — $73.99 — is the fair value CirclFi publishes for KBH, against a current price of $54.72.

Low · ML-RIVHigh · First Chicago
$32.86median $73.99$253.26
Where the range comes from
Most bearish modelML Residual Income$32.86
Most bullish modelFirst Chicago$253.26
Model agreement8 bullish · 4 bearishwide

A band this wide is itself the finding. When independent methods land far apart, they are reading a business whose value depends heavily on which lens you apply — volatile earnings, heavy reinvestment, or an asset base that cash-flow and asset-based methods score differently. That disagreement is information: it says the choice of method matters more than usual for KBH. Treat the median as one reading among several and compare the individual models below before acting.

Every figure above is one model's standalone output on KBH, not a CirclFi price target. How each model works →

What Is KB Home (KBH) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, our multi-model framework produces a cautiously optimistic read on KB Home at $54.72. With an estimated intrinsic value of $73.99 and 8 of 12 models pointing higher, the median implied return is +35.2%. The most optimistic model, First Chicago, places fair value at $253.26 (+362.8%), while ML-RIV — the most conservative — estimates $32.86 (-39.9%). This +402.8% gap reflects genuine analytical uncertainty about KB Home's intrinsic worth.

What Do the Models Say About KBH?

12 of 13 models are currently active for KBH. Of these, 8 models suggest upside while 4 models suggest overvaluation. Taken together, their median fair value for KBH is $73.99 — the figure CirclFi publishes as this stock's fair value. One component of that median, the Bayesian DCF, returns $49.76 on its own, implying -9.1% downside from the current price. See which stocks rank higher →

How Does KBH Rank in Residential Construction?

Among 21 Residential Construction stocks, KBH ranks #11 by Quality of Company score. CirclFi's QOC score of 8.1/10 evaluates 32 fundamental signals. A score of 8.1 places KBH in the top tier.

As a industrial sector, KB Home operates in a sector where margin expansion trajectory is a critical driver of valuation. Investors evaluating KBH should weigh these sector-specific dynamics alongside our model-derived fair values.

Is KBH a Value Trap?

CirclFi's Value Trap algorithm assigns KBH a score of 0/100 (SAFE). This indicates minimal risk. Fundamentals are healthy. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

12 of 13 models are active for KB Home. Broad coverage provides high confidence. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi Quality of Company (QOC) framework, which evaluates 32 signals including margin stability, revenue growth trajectory, leverage, and free cash flow generation, KB Home is rated at 8.1/10. This strong-tier score demonstrates strong fundamentals across the majority of our quality signals.

The gap between the most bullish and bearish model spans +402.8% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every KBH valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across KBH's 12 active models, average confidence is 42%. Lower confidence may reflect limited history or high volatility.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy KB Home Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar Residential Construction Stocks Should You Also Analyze?

11 related Residential Construction stocks with 13-model coverage

MHOM/I Homes, Inc.QOC 8.1LEGHLegacy Housing CorporationQOC 7.8NOBHNobility Homes, Inc.QOC 8.2LENLennar CorporationQOC 7.4DHID.R. Horton, Inc.QOC 8.4MTHMeritage Homes CorporationQOC 7.1HOVHovnanian Enterprises, Inc.QOC 6.9VNJAVanjia CorporationQOC 5.6CVCOCavco Industries, Inc.QOC 8.7IBPInstalled Building Products, Inc.QOC 9.2TOLToll Brothers, Inc.QOC 9.0

Read investment analysis: MHO · LEGH · NOBH · LEN · DHI · MTH · HOV · VNJA · CVCO · IBP · TOL

Which Other Stocks Have a Similar Quality Score to KBH?

7 companies across all industries closest to KBH’s Quality of Company score of 8.1/10.

GLXZGalaxy Gaming, Inc.QOC 8.1CHTChunghwa Telecom Co., Ltd.QOC 8.1FCFranklin Covey Co.QOC 8.1CIACitizens, Inc.QOC 8.1TRMBTrimble Inc.QOC 8.1LSCCLattice Semiconductor CorporationQOC 8.1NVDANVIDIA CorporationQOC 10.0

Read investment analysis: GLXZ · CHT · FC · CIA · TRMB · LSCC · NVDA

What Else Do Investors Ask About KB Home’s Valuation?

What is KB Home's intrinsic value in 2026?

CirclFi puts KB Home (KBH)'s intrinsic value at $73.99 — the median of 12 independent model estimates as of 2026-08-27, ranging from $32.86 to $253.26. One component of that median, the Bayesian DCF, runs 10,000 Monte Carlo simulations with jump-diffusion and returns $49.76 on its own. The Quality of Company score is 8.1/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is KBH overvalued or undervalued right now?

At $54.72, 8 of 12 active models suggest KBH may be undervalued, while 4 indicate potential overvaluation. The median of all 12 fair value estimates is $73.99, 35.2% above the current price of $54.72 — a consensus view that KBH is undervalued. The assessment depends on which methodology best fits KB Home's business model in Residential Construction.

What does a Quality of Company score of 8.1 mean for KBH?

KB Home's QOC of 8.1/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores above 7 indicate strong fundamentals and disciplined management.

How many valuation models does CirclFi run on KBH?

CirclFi analyzes KBH with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 12 of 13 are active for this stock. Read the full methodology →

Which valuation models are most bullish and most bearish on KBH?

Of the 12 models currently active on KBH, First Chicago is the most bullish at $253.26 per share, and ML Residual Income is the most bearish at $32.86. CirclFi's published fair value for KBH is the median of that range, $73.99, not either extreme. The gap between the two ends equals 298% of the median — a wide spread, meaning the methods genuinely disagree and the median should carry less weight. Browse stocks by value-trap risk →

Is KBH a value trap in 2026?

KB Home's Value Trap score is 0/100 (SAFE). This low score indicates the current valuation is not artificially depressed by fundamental deterioration, suggesting genuine opportunity rather than a trap.

Cite this analysis — “According to CirclFi’s 12-model valuation engine, KB Home (KBH) has a median fair value of $73.99 — 35.2% above the current price of $54.72 — as of 2026-08-27.” Source: circlfi.com/stock/KBH/ · Methodology
Primary sources for this KBH valuation
  • Financial statements: KB Home 10-K and 10-Q filings on SEC EDGAR (CIK 0000795266) — 700+ standardized XBRL tags, published by the U.S. Securities and Exchange Commission.
  • Discount-rate inputs: FRED, Federal Reserve Bank of St. Louis — risk-free rates, VIX, yield curve, inflation.
  • News sentiment: The GDELT Project — global media tone, input to the Sentiment SOTP model.
  • Model definitions: CirclFi methodology — the published specification for all 13 models, including the academic sources each one implements.

Market data for KBH as of ; valuations recomputed .

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