Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
KB HomeMEX:KBH 78 Debt-to-Equity is 0.53 as of May. 2026, which is 18% below its 10-year median of 0.65. GuruFocus rates MEX:KBH with a GF Score™ of 78/100 and a GF Value™ of MXN1,043.27. The stock has 6 warning signs investors should review. Among 88 Homebuilding & Construction companies, KB Home ranks better than 54.55% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for KB Home's Debt-to-Equity or its related term are showing as below:
MEX:KBH'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.42 Med: 0.65 Max: 1.59
Current: 0.53
During the past 13 years, the highest Debt-to-Equity Ratio of KB Home was 1.59. The lowest was 0.42. And the median was 0.65.
MEX:KBH's Debt-to-Equity is ranked better than 54.55% of 88
companies
in the Homebuilding & Construction industry
Industry Median: 0.72
vs MEX:KBH: 0.53
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
KB Home Debt-to-Equity Related Terms
KB Home Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for KB Home's Debt-to-Equity 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-Equity Comparison
For the Residential Construction subindustry, KB Home's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where KB Home's Debt-to-Equity 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.
KB Home (MEX:KBH) has a Debt-to-Equity of 0.53 as of May. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on KB Home and its competitors. This is 18% below median its historical median of 0.65. Over the past decade, KB Home's Debt-to-Equity has ranged from 0.42 to 1.59. According to the industry distribution chart, KB Home ranks #40 out of 88 companies in the Homebuilding & Construction industry, placing it in the top 45.5%.
Is KB Home's Debt-to-Equity too high?
KB Home's current Debt-to-Equity of 0.53 is 18% below median its 10-year median of 0.65. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 1.59. The Homebuilding & Construction industry median Debt-to-Equity is 0.72. KB Home's value of 0.53 is 26.4% below this industry median. Based on the distribution chart, KB Home ranks #40 out of 88 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, KB Home has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does KB Home's Debt-to-Equity compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #40 out of 88 companies for Debt-to-Equity. This puts KB Home in the upper half of its industry. The industry median Debt-to-Equity is 0.72. KB Home's value of 0.53 is 26.4% below this benchmark. Historically, KB Home's own Debt-to-Equity has ranged from 0.42 to 1.59 over the past decade. While the company's 10-year median is 0.65 vs. the industry median of 0.72, KB Home has consistently been below 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-Equity for a Homebuilding & Construction company?
The median Debt-to-Equity among Homebuilding & Construction companies is 0.72, based on 88 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current Debt-to-Equity of 0.53 is 26.4% below 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median Debt-to-Equity is 0.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current Debt-to-Equity is 0.53, which is 18% below median its own 10-year median of 0.65. 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-Equity of 0.53. The stock's GF Value™ is MXN1,043.27, compared to a current price of MXN1,010.00 — trading 3.2% below its estimated fair value. The current Debt-to-Equity is 0.53, which is 18% below median its 10-year median of 0.65 and 26.4% below the Homebuilding & Construction industry median of 0.72. KB Home's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For KB Home (MEX:KBH), the current Debt-to-Equity is 0.53 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 3.2% below its estimated GF Value™ of MXN1,043.27.
Key valuation signals for MEX:KBH:
Debt-to-Equity: 0.53 (18% below median its 10-year median of 0.65)
GF Value™: MXN1,043.27 vs. price of MXN1,010.00 (3.2% below fair value)
Industry Position: 26.4% below the Homebuilding & Construction median (#40 of 88)
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.
78GF Score
Get the complete analysis for MEX:KBH
Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:KBH has been successfully added to your 
