Is Kontoor Brands, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Kontoor Brands, Inc. moved from fair to very attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 15, an EV to EBITDA of 10.87, and a PEG ratio of 2.36. In comparison to peers, Skechers U.S.A., Inc. has a lower P/E of 12.84, while Ralph Lauren Corp. shows a significantly higher P/E of 48.61, highlighting Kontoor's relative attractiveness in the footwear industry.
Despite recent challenges, including a -2.47% return over the past week compared to a 1.05% gain in the S&P 500, Kontoor has delivered impressive long-term performance with a 3-year return of 126.36%, significantly outpacing the S&P 500's 70.41%. This strong performance, combined with its favorable valuation metrics, reinforces the conclusion that Kontoor Brands, Inc. is currently undervalued.