Is Kimberly-Clark Corp. overvalued or undervalued?

As of 31 January 2025, Kimberly-Clark Corp. has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 19, a Price to Book Value of 45.33, and an EV to EBITDA ratio of 15.33. In comparison to its peers, Kimberly-Clark's P/E ratio of 18.81 is significantly lower than Procter & Gamble Co.'s 39.54, indicating that Kimberly-Clark may be a more attractive investment relative to its more expensive competitor.
Despite its fair valuation, Kimberly-Clark has shown underperformance in stock returns compared to the S&P 500, with a year-to-date return of -0.69% against the S&P's 2.44%. This performance, coupled with a strong ROE of 232.60% and a solid dividend yield of 4.51%, suggests that while the stock is fairly valued, it may present a compelling opportunity for income-focused investors.