Is Kontoor Brands, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kontoor Brands, Inc. has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued based on its current metrics, with 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 and a more favorable EV to EBITDA of 8.28, while Ralph Lauren Corp. has a much higher P/E of 48.61, highlighting Kontoor's relative attractiveness in the footwear industry.
Despite a year-to-date return of -0.74% compared to the S&P 500's 13.30%, Kontoor has shown impressive long-term performance with a 195.19% return over the past five years, significantly outperforming the S&P 500's 91.29% return in the same period. This long-term growth, combined with its attractive valuation ratios, supports the conclusion that Kontoor Brands, Inc. is currently undervalued.