Is Kenvue Inc. (KVUE) overvalued?
On Equity Rank's model estimate, KVUE trades close to its fair value (3% above it). Kenvue Inc. (KVUE) last closed at $19.31; the multi-method model fair value is $18.73.
| Price | Model fair value | Price vs model |
|---|---|---|
| $19.31 | $18.73 | 3% above |
What the answer rests on
- 3 of 12 valuation methods put KVUE's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, KVUE's free cash flow would need to grow about 1.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -7.1% a year.
- KVUE trades at 21.9 times its last year's earnings, against a median of 17.8 for 47 profitable Consumer Staples companies.
- Over the past year the price sat below the model fair value on 26% of trading days. The gap ranged from 25% below to 30% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind KVUE's fair value · What prices assume · Other companies