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KB Home (STU:KBH) Cyclically Adjusted PB Ratio : 2.27 (As of May. 24, 2024)


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What is KB Home Cyclically Adjusted PB Ratio?

As of today (2024-05-24), KB Home's current share price is €63.50. KB Home's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was €27.99. KB Home's Cyclically Adjusted PB Ratio for today is 2.27.

The historical rank and industry rank for KB Home's Cyclically Adjusted PB Ratio or its related term are showing as below:

STU:KBH' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.68   Med: 1.6   Max: 3.02
Current: 2.2

During the past years, KB Home's highest Cyclically Adjusted PB Ratio was 3.02. The lowest was 0.68. And the median was 1.60.

STU:KBH's Cyclically Adjusted PB Ratio is ranked worse than
66.67% of 78 companies
in the Homebuilding & Construction industry
Industry Median: 1.42 vs STU:KBH: 2.20

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

KB Home's adjusted book value per share data for the three months ended in Feb. 2024 was €47.411. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €27.99 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


KB Home Cyclically Adjusted PB Ratio Historical Data

The historical data trend for KB Home's Cyclically Adjusted PB 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.

* Premium members only.

KB Home Cyclically Adjusted PB Ratio Chart

KB Home Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.31 2.08 1.93 1.23 1.72

KB Home Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.32 1.55 1.73 1.72 2.09

Competitive Comparison of KB Home's Cyclically Adjusted PB Ratio

For the Residential Construction subindustry, KB Home's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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's Cyclically Adjusted PB Ratio Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where KB Home's Cyclically Adjusted PB Ratio falls into.



KB Home Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

KB Home's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=63.50/27.99
=2.27

* 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's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, KB Home's adjusted Book Value per Share data for the three months ended in Feb. 2024 was:

Adj_Book=Book Value per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=47.411/130.9299*130.9299
=47.411

Current CPI (Feb. 2024) = 130.9299.

KB Home Quarterly Data

Book Value per Share CPI Adj_Book
201405 5.628 100.373 7.341
201408 6.091 100.352 7.947
201411 12.513 99.635 16.443
201502 15.373 99.032 20.325
201505 15.716 100.333 20.509
201508 15.998 100.548 20.832
201511 17.078 100.135 22.330
201602 17.339 100.040 22.693
201605 17.158 101.355 22.165
201608 17.703 101.617 22.810
201611 18.776 101.829 24.142
201702 19.121 102.779 24.358
201705 18.750 103.256 23.775
201708 18.026 103.587 22.784
201711 18.859 104.072 23.726
201802 17.150 105.052 21.375
201805 18.472 106.148 22.785
201808 19.752 106.383 24.310
201811 21.133 106.338 26.020
201902 21.521 106.649 26.421
201905 22.244 108.048 26.955
201908 23.007 108.245 27.829
201911 24.069 108.519 29.040
202002 24.769 109.139 29.714
202005 25.226 108.175 30.532
202008 23.941 109.662 28.584
202011 24.610 109.793 29.348
202102 24.695 110.968 29.137
202105 25.785 113.576 29.725
202108 27.612 115.421 31.322
202111 29.982 117.269 33.475
202202 31.159 119.703 34.081
202205 35.717 123.323 37.920
202208 40.255 124.958 42.179
202211 42.758 125.607 44.570
202302 41.842 126.928 43.161
202305 42.987 128.314 43.863
202308 44.280 129.538 44.756
202311 46.404 129.548 46.899
202402 47.411 130.930 47.411

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


KB Home  (STU:KBH) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


KB Home Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of KB Home's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


KB Home (STU:KBH) Business Description

Traded in Other Exchanges
Address
10990 Wilshire Boulevard, Floor 7, Los Angeles, CA, USA, 90024
KB Home is an American construction company that focuses on residential construction. The company builds single-family homes and communities across Arizona, California, Colorado, Florida, Nevada, Texas, North Carolina, Idaho and the Washington, D.C., area. KB Home operates in several markets and focuses on first-time and move-up homebuyers. The company follows a built-to-order model that offers personalized homes at attainable prices based on the market location. The company 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.