KB Home - Comparative Multiple Analysis

KB Home (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of KB Home

WikiWealth compares KB Home's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with KB Home's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for KB Home.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to KB Home's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for KB Home's Analysis

How does this work? The Comparative Investment Analysis determines the value of KB Home by comparing KB Home financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of KB Home.

See the KB Home cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in KB Home.

Also, see the KB Home's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and KB Home's valuation conclusion for a quick summary.