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

As of 30 June 2025, the valuation grade for Church & Dwight Co., Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing relative to its earnings potential. The company appears overvalued based on key metrics, including a P/E ratio of 31, which is substantially higher than its peers like Kimberly-Clark Corp. at 19.95 and The Clorox Co. at 21.04. Additionally, the EV to EBITDA ratio stands at 22.25, again exceeding the industry averages, further supporting the overvaluation thesis.
In comparison to its peers, Church & Dwight's PEG ratio of 1.66 suggests that its growth prospects do not justify its high valuation, especially when compared to Kimberly-Clark's PEG of 3.31. The company's recent stock performance has also been underwhelming, with a year-to-date return of -12.07%, significantly lagging behind the S&P 500's return of 12.22% over the same period. This combination of high valuation ratios and poor stock performance reinforces the conclusion that Church & Dwight Co., Inc. is currently overvalued.