KB Home (FRA:KBH) ROCE %: 2.49% (As of Feb. 2026)

What is KB Home ROCE %?

KB Home FRA:KBH +13.94% 77 ROCE % is 2.49% as of Feb. 2026. GuruFocus rates FRA:KBH with a GF Score™ of 77/100 and a GF Value™ of €52.16 (Fairly Valued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. KB Home's annualized ROCE % for the quarter that ended in Feb. 2026 was 2.49%.

KB Home (FRA:KBH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

KB Home ROCE % Related Terms

KB Home ROCE % Historical Data

* Premium members only.

The historical data trend for KB Home's ROCE % 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.

KB Home ROCE % Chart

KB Home Annual Data

Trend

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Nov24

Nov25

ROCE %

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14.04

20.90

12.73

13.51

8.50

KB Home Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
ROCE %	Get a 7-Day Free Trial															8.82	8.74	9.13	8.59	2.49

77GF Score

KB Home FRA:KBH

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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KB Home ROCE % Calculation

KB Home's annualized ROCE % for the fiscal year that ended in Nov. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2025 )		(A: Nov. 2024 )		(A: Nov. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2025 )		(A: Nov. 2024 )		(A: Nov. 2025 )
	=	454.343	/	( ( (6533.871 - 881.85)	+	(5778.418 - 744.963) )	/ 2 )
	=	454.343	/	( (5652.021	+	5033.455)	/ 2 )
	=	454.343	/	5342.738
	=	8.50 %

KB Home's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	123.136	/	( ( (5778.418 - 744.963)	+	(5670.6 - 832.462) )	/ 2 )
	=	123.136	/	( ( 5033.455	+	4838.138 )	/ 2 )
	=	123.136	/	4935.7965
	=	2.49 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 2.49% mean?

KB Home (FRA:KBH) has a ROCE % of 2.49% as of Feb. 2026.

Is KB Home's ROCE % too high?

KB Home's current ROCE % is 2.49%. The Homebuilding & Construction industry median ROCE % is 8.02. KB Home's value of 2.49% is 69% below this industry median. Overall, KB Home has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does KB Home's ROCE % compare to GRBK and MHO?

KB Home's ROCE % of 2.49% can be compared against companies in the Homebuilding & Construction industry. The industry median ROCE % is 8.02. KB Home's value of 2.49% is 69% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Homebuilding & Construction company?

The median ROCE % among Homebuilding & Construction companies is 8.02, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current ROCE % of 2.49% is 69% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median ROCE % is 8.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current ROCE % is 2.49%. 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?

Based on GuruFocus' analysis, KB Home (FRA:KBH) is currently considered Fairly Valued. The stock's GF Value™ is €52.16, compared to a current price of €53.54 — trading 2.6% above its estimated fair value. The current ROCE % is 2.49% and 69% below the Homebuilding & Construction industry median of 8.02. KB Home's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For KB Home (FRA:KBH), the current ROCE % is 2.49% as of Feb. 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 (FRA:KBH) Overvalued in 2026?

Based on GuruFocus' analysis, KB Home stock appears to be overvalued. The current stock price of €53.54 is trading 2.6% above its estimated GF Value™ of €52.16. GuruFocus considers KB Home to be Fairly Valued.

Key valuation signals for FRA:KBH:

ROCE %: 2.49%
GF Value™: €52.16 vs. price of €53.54 (2.6% above fair value)
GF Score™: 77/100 with 6 warning signs
Industry Position: 69% below the Homebuilding & Construction median

No single metric tells the full story. See the FRA:KBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

KB Home Business Description

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies GRBK MHO SKY CVCO MTH DFH LGIH BZH TMHC HOV DHI PHM LEN NVR TSE:1928 TOL IBP TSE:1911 LSE:BTRW LSE:PSN

Other Exchanges KBH:USA

Address 10990 Wilshire Boulevard, Floor 7, Los Angeles, CA, USA, 90024

Website https://www.kbhome.com

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.

77GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€53.54

Price

€52.16

GF Value

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