We’ve recently updated our valuation analysis.

Kimberly-Clark Valuation

Is KMB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KMB?

Other financial metrics that can be useful for relative valuation.

KMB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA13.5x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does KMB's PE Ratio compare to its peers?

KMB PE Ratio vs Peers
The above table shows the PE ratio for KMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.6x
CL Colgate-Palmolive
30.1x8.5%US$58.6b
CHD Church & Dwight
22.2x5.6%US$17.4b
CLX Clorox
34.2x14.2%US$15.8b
REYN Reynolds Consumer Products
19.9x11.3%US$5.5b
KMB Kimberly-Clark
21.3x7.4%US$38.0b

Price-To-Earnings vs Peers: KMB is good value based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (26.6x).


Price to Earnings Ratio vs Industry

How does KMB's PE Ratio compare vs other companies in the Global Household Products Industry?

Price-To-Earnings vs Industry: KMB is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the Global Household Products industry average (21.1x)


Price to Earnings Ratio vs Fair Ratio

What is KMB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio29.5x

Price-To-Earnings vs Fair Ratio: KMB is good value based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.5x).


Share Price vs Fair Value

What is the Fair Price of KMB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KMB ($112.54) is trading below our estimate of fair value ($196.53)

Significantly Below Fair Value: KMB is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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