KBH Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. As for KBH, the DDM model, as implemented by StockNews, implies a negative return of 88.68% relative to its current price. To help understand and contextualize the model's evaluation of KBH, investors may wish to consider are:

• In comparison to other stocks in the large-sized revenue class, it has a discount rate lower than 93.46% of dividend issuing stocks in its revenue class.
• In terms of opportunity, Kb Home's estimated return of -88.68% surpasses about 2.8% of dividend issuers we applied the dividend discount model to.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for KBH, approximately 5.42% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

KBH Dividends vs. Peers