Is Kenvue, Inc. overvalued or undervalued?

As of 17 October 2025, Kenvue, Inc. has moved from an attractive to an expensive valuation grade. The company appears to be overvalued, particularly when considering its P/E ratio of 21, which is higher than the peer average of 18.14 for Kenvue's immediate competitors. Additionally, Kenvue's EV to EBITDA ratio stands at 15.33, while Kimberly-Clark Corp. and Church & Dwight Co., Inc. have ratios of 15.42 and 22.51, respectively, indicating that Kenvue's valuation does not justify its performance compared to peers.
The PEG ratio for Kenvue is notably high at 6.16, suggesting that the stock is priced for growth that may not materialize. The company's return performance has also been disappointing, with a year-to-date return of -28.38% compared to a positive 13.30% return for the S&P 500, reinforcing the notion that Kenvue is not currently a favorable investment.