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 valuation outlook. The company is currently considered undervalued based on its metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 10.87, and a ROE of 58.73%, which highlight its strong profitability and reasonable valuation compared to its peers.
In the peer comparison, Kontoor Brands stands out against On Holding AG, which has a much higher P/E of 101.93, and Ralph Lauren Corp., with a P/E of 48.61. Additionally, Skechers U.S.A., Inc. shows a more favorable EV to EBITDA of 8.28, further emphasizing Kontoor's competitive positioning. Notably, while Kontoor's stock has underperformed the S&P 500 year-to-date and over one year, it has significantly outperformed over three and five years, suggesting potential for recovery and growth.