What is KB Home worth?
With the base-case assumptions below, a discounted cash flow model on KB Home's reported free cash flow gives $95.47 per share. The share price was $50.46 on November 10, 2026, 47% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 3.5% | 10.0% | $60.34 | +20% |
| Base | 8.5% | 9.0% | $95.47 | +89% |
| Bull | 13.5% | 8.0% | $165.51 | +228% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $121.74 | $129.80 | $139.65 | $151.97 | $167.81 |
| 8.0% | $102.10 | $107.33 | $113.51 | $120.93 | $129.99 |
| 9.0% | $87.77 | $91.35 | $95.47 | $100.28 | $105.97 |
| 10.0% | $76.86 | $79.41 | $82.29 | $85.58 | $89.38 |
| 11.0% | $68.30 | $70.16 | $72.25 | $74.59 | $77.25 |
Where the presets come from
Base: years 1 to 5 grow at KB Home's revenue growth rate over the last 5 fiscal years (8.3% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions