Is Kontoor Brands, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kontoor Brands, Inc. moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, supported by a P/E ratio of 15, an EV to EBITDA ratio of 10.87, and a PEG ratio of 2.36. In comparison to peers, Skechers U.S.A., Inc. has a lower P/E ratio of 12.84, while Ralph Lauren Corp. shows a much higher P/E of 48.61, highlighting Kontoor's relative attractiveness in the market.
Recent stock performance shows Kontoor Brands outperformed the S&P 500 over the past week and month, with returns of 14.06% and 4.90%, respectively, while it has lagged behind over the longer term, particularly year-to-date and over one year. This mixed performance reinforces the narrative of undervaluation, as the company has strong financial metrics, including a ROCE of 42.10% and ROE of 58.73%, suggesting robust operational efficiency and profitability.