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KB HomeMEX:KBH 80 Debt-to-EBITDA is 11.79 as of May. 2026, which is 203% above its 10-year median of 3.89. GuruFocus rates MEX:KBH with a GF Score™ of 80/100 and a GF Value™ of MXN1,020.31. The stock has 7 warning signs investors should review. Among 82 Homebuilding & Construction companies, KB Home ranks worse than 59.76% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for KB Home's Debt-to-EBITDA or its related term are showing as below:
MEX:KBH'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.72 Med: 3.89 Max: 16.62
Current: 5.43
During the past 13 years, the highest Debt-to-EBITDA Ratio of KB Home was 16.62. The lowest was 1.72. And the median was 3.89.
MEX:KBH's Debt-to-EBITDA is ranked worse than 59.76% of 82
companies
in the Homebuilding & Construction industry
Industry Median: 3.735
vs MEX:KBH: 5.43
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
KB Home Debt-to-EBITDA Related Terms
KB Home Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for KB Home's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:KBH vs GRBK, MHO, CVCO: Debt-to-EBITDA Comparison
For the Residential Construction subindustry, KB Home's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
KB Home Debt-to-EBITDA vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where KB Home's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (May. 2026) EBITDA data.
KB Home (MEX:KBH) has a Debt-to-EBITDA of 11.79 as of May. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on KB Home. This is 203% above median its historical median of 3.89. Over the past decade, KB Home's Debt-to-EBITDA has ranged from 1.72 to 16.62. According to the industry distribution chart, KB Home ranks #49 out of 82 companies in the Homebuilding & Construction industry, placing it in the top 59.8%.
Is KB Home's Debt-to-EBITDA too high?
KB Home's current Debt-to-EBITDA of 11.79 is 203% above median its 10-year median of 3.89. Over the past 10 years, this metric has ranged from a low of 1.72 to a high of 16.62. The Homebuilding & Construction industry median Debt-to-EBITDA is 3.74. KB Home's value of 11.79 is 215.7% above this industry median. Based on the distribution chart, KB Home ranks #49 out of 82 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, KB Home has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does KB Home's Debt-to-EBITDA compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #49 out of 82 companies for Debt-to-EBITDA. This places KB Home in the lower half of its industry. The industry median Debt-to-EBITDA is 3.74. KB Home's value of 11.79 is 215.7% above this benchmark. Historically, KB Home's own Debt-to-EBITDA has ranged from 1.72 to 16.62 over the past decade. While the company's 10-year median is 3.89 vs. the industry median of 3.74, KB Home has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Homebuilding & Construction company?
The median Debt-to-EBITDA among Homebuilding & Construction companies is 3.74, based on 82 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current Debt-to-EBITDA of 11.79 is 215.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on KB Home. For the Homebuilding & Construction industry, the median Debt-to-EBITDA is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current Debt-to-EBITDA is 11.79, which is 203% above median its own 10-year median of 3.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KB Home stock overvalued right now?
KB Home (MEX:KBH) has a current Debt-to-EBITDA of 11.79. The stock's GF Value™ is MXN1,020.31, compared to a current price of MXN1,010.00 — trading 1% below its estimated fair value. The current Debt-to-EBITDA is 11.79, which is 203% above median its 10-year median of 3.89 and 215.7% above the Homebuilding & Construction industry median of 3.74. KB Home's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For KB Home (MEX:KBH), the current Debt-to-EBITDA is 11.79 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is KB Home (MEX:KBH) Overvalued in 2026?
Based on GuruFocus' analysis, KB Home stock appears to be undervalued.
The current stock price of MXN1,010.00 is trading 1% below its estimated GF Value™ of MXN1,020.31.
Key valuation signals for MEX:KBH:
Debt-to-EBITDA: 11.79 (203% above median its 10-year median of 3.89)
GF Value™: MXN1,020.31 vs. price of MXN1,010.00 (1% below fair value)
Industry Position: 215.7% above the Homebuilding & Construction median (#49 of 82)
No single metric tells the full story. See the MEX:KBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KB Home is an American construction company that focuses on residential construction in the United States. The company builds single-family homes and communities across different geographical segments which include the West Coast which also derives the majority of the revenue, Southwest, Central, and Southeast. The company operates in several markets and focuses on first-time and move-up homebuyers. It also invests in land acquisition and development to support future building activities and is also engaged in financial services operations which includes providing mortgage banking services through its joint venture with a third party.
80GF Score
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