KB HomeMEX:KBH 80 PEG Ratio is 0.87 as of Jun. 29, 2026, which is 164% above its 10-year median of 0.33. GuruFocus rates MEX:KBH with a GF Score™ of 80/100 and a GF Value™ of MXN960.17. The stock has 8 warning signs investors should review. Among 42 Homebuilding & Construction companies, KB Home ranks better than 52.38% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, KB Home's PE Ratio without NRI is 12.32. KB Home's 5-Year EBITDA growth rate is 14.10%. Therefore, KB Home's PEG Ratio for today is 0.87.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for KB Home's PEG Ratio or its related term are showing as below:
MEX:KBH'
s PEG Ratio Range Over the Past 10 Years
Min: 0.11 Med: 0.33 Max: 1.61
Current: 0.99
During the past 13 years, KB Home's highest PEG Ratio was 1.61. The lowest was 0.11. And the median was 0.33.
MEX:KBH's PEG Ratio is ranked better than 52.38% of 42
companies
in the Homebuilding & Construction industry
Industry Median: 1.055
vs MEX:KBH: 0.99
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
KB Home (MEX:KBH) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
KB Home PEG Ratio Related Terms
KB Home PEG Ratio Historical Data
* Premium members only.
The historical data trend for KB Home's PEG Ratio 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.
For the Residential Construction subindustry, KB Home's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's PEG Ratio distribution charts can be found below:
* The bar in red indicates where KB Home's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
KB Home (MEX:KBH) has a PEG Ratio of 0.87 as of Jun. 29, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on KB Home and its competitors. This is 164% above median its historical median of 0.33. Over the past decade, KB Home's PEG Ratio has ranged from 0.11 to 1.61. According to the industry distribution chart, KB Home ranks #20 out of 42 companies in the Homebuilding & Construction industry, placing it in the top 47.6%.
Is KB Home's PEG Ratio too high?
KB Home's current PEG Ratio of 0.87 is 164% above median its 10-year median of 0.33. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 1.61. The Homebuilding & Construction industry median PEG Ratio is 1.06. KB Home's value of 0.87 is 17.5% below this industry median. Based on the distribution chart, KB Home ranks #20 out of 42 companies in the Homebuilding & Construction industry, which is above 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 PEG Ratio compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #20 out of 42 companies for PEG Ratio. This puts KB Home in the upper half of its industry. The industry median PEG Ratio is 1.06. KB Home's value of 0.87 is 17.5% below this benchmark. Historically, KB Home's own PEG Ratio has ranged from 0.11 to 1.61 over the past decade. While the company's 10-year median is 0.33 vs. the industry median of 1.06, 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 PEG Ratio for a Homebuilding & Construction company?
The median PEG Ratio among Homebuilding & Construction companies is 1.06, based on 42 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current PEG Ratio of 0.87 is 17.5% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median PEG Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current PEG Ratio is 0.87, which is 164% above median its own 10-year median of 0.33. 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 PEG Ratio of 0.87. The stock's GF Value™ is MXN960.17, compared to a current price of MXN1,010.00 — trading 5.2% above its estimated fair value. The current PEG Ratio is 0.87, which is 164% above median its 10-year median of 0.33 and 17.5% below the Homebuilding & Construction industry median of 1.06. KB Home's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For KB Home (MEX:KBH), the current PEG Ratio is 0.87 as of Jun. 29, 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 overvalued.
The current stock price of MXN1,010.00 is trading 5.2% above its estimated GF Value™ of MXN960.17.
Key valuation signals for MEX:KBH:
PEG Ratio: 0.87 (164% above median its 10-year median of 0.33)
GF Value™: MXN960.17 vs. price of MXN1,010.00 (5.2% above fair value)
Industry Position: 17.5% below the Homebuilding & Construction median (#20 of 42)
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.
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