Is KKR & Co., Inc. overvalued or undervalued?

As of 3 January 2025, KKR & Co., Inc. has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued based on its high P/E ratio of 50, compared to peers such as BlackRock, Inc. with a P/E of 23.40 and Apollo Global Management, Inc. at 21.81. Additionally, KKR's EV to EBITDA ratio stands at 22.57, which is significantly higher than BlackRock's 16.40, indicating a premium valuation relative to its earnings potential.
The company's dividend yield is notably high at 55.76%, and it boasts a strong ROCE of 43.66%. However, these positive metrics do not sufficiently justify the elevated valuation levels when compared to its peers. Recent stock performance shows that KKR has underperformed the S&P 500 year-to-date, with a return of -17.42% compared to the index's 2.44%. Overall, KKR & Co., Inc. appears to be overvalued in the current market environment.