Is Kellanova overvalued or undervalued?

As of 17 October 2025, Kellanova's valuation grade has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. Based on the current metrics, Kellanova appears to be undervalued. The P/E ratio stands at 26, while the industry average is not provided, suggesting a competitive positioning. Additionally, the EV to EBITDA ratio is 17.82, and the PEG ratio is 1.35, which further supports the notion of an attractive valuation relative to its growth prospects.
In comparison to its peers, Kellanova's P/E ratio of 26.43 is slightly lower than The Hershey Co.'s 26.49, but higher than McCormick & Co.'s 24.07, indicating a competitive valuation landscape. Notably, Kellanova's ROE of 34.18% and ROCE of 20.31% reflect strong profitability metrics. Over the past year, Kellanova has returned 2.55%, significantly trailing the S&P 500's 14.08%, which may suggest potential for upside as the market recognizes its value.