Is Church & Dwight Co., Inc. overvalued or undervalued?

As of 30 October 2024, the valuation grade for Church & Dwight Co., Inc. has moved from expensive to very expensive. This indicates that the company is currently overvalued. The P/E ratio stands at 31, significantly higher than the industry average, while the EV to EBITDA ratio is 22.25, further highlighting the premium at which the stock is trading. Additionally, the PEG ratio of 1.66 suggests that the stock's growth expectations are not aligned with its current valuation.
In comparison to its peers, Church & Dwight's P/E ratio of 30.26 is lower than Procter & Gamble's 39.54 but higher than Kimberly-Clark's 18.81, indicating a mixed competitive positioning. The company's return on equity (ROE) is robust at 20.54%, yet this does not justify the high valuation levels when compared to peers like Colgate-Palmolive, which has a fair valuation with a P/E of 40.09. Notably, Church & Dwight's stock has underperformed the S&P 500 over the past year, declining by 11% compared to the index's 10.26% gain, reinforcing the view that the stock is overvalued.