What does KB Home do?

KB Home builds and sells new homes in the United States, including single-family houses, townhomes and condominiums. Its main buyers are first-time buyers, people moving up to a bigger home, and active adults. It also helps buyers with mortgages, insurance and title services.

What is KB Home's fair value?

On an owner-earnings DCF, KB Home's most-likely fair value is about $97, versus a recent price near $43. A margin-of-safety estimate, not a price target. Analysis, not advice.

Consumer Cyclical · Residential Construction · KBH

What KB Home Does & How It Makes Money (KBH)

Updated October 2026 · reflects KB Home's latest reported financials

U.S. homebuilder selling new homes with mortgage and insurance services. It makes most of its money by building homes and selling them to buyers.

KB Home's story, moat and numbers — in a 3-minute visual book.

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How KB Home makes money

It makes most of its money by building homes and selling them to buyers. It earns more from mortgage loans, insurance and title services it provides to those same buyers.

What KB Home does

KB Home is a U.S. homebuilder founded in 1957 and based in Los Angeles; it was called Kaufman and Broad Home Corporation until 2001. It builds attached and detached single-family homes, townhomes and condominiums, mostly for first-time and move-up buyers as well as active adults. It operates in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas and Washington. Beyond home sales, KB Home runs a financial services business for its buyers. This includes mortgage loan origination, property and casualty insurance (including earthquake, flood and personal property coverage) and title services. These services add revenue from each home it sells.

Products & services

Single-family detached homes
Townhomes and attached homes
Condominiums
Residential mortgage loan origination
Property, casualty, earthquake and flood insurance
Title services

What is KB Home worth?

On an owner-earnings DCF, KB Home's most-likely value is about $97 versus a recent price near $43 (124% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$66) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Deeply discounted

Owner-earnings fair value · recent price ≈ $43

Fair value (most likely)

$97

Range

$81–$134

No-growth floor

$66

Price

~$43

On the financials alone, $43 is below even the no-growth floor ($66); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -5.8%/yr. A bargain only if that pessimism is overdone.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Consumer Cyclical Industry Residential Construction HQ United States Ticker KBH Official site

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