Is MillerKnoll, Inc. overvalued or undervalued?

As of 20 February 2025, the valuation grade for MillerKnoll, Inc. has moved from fair to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 11.36, and a Price to Book Value of 0.92. In comparison, a peer such as MillerKnoll has a P/E of 14.90 and an EV to EBITDA of 11.32, indicating that MillerKnoll is trading at a premium relative to its peers.
The company's return on equity (ROE) stands at 6.15%, while the return on capital employed (ROCE) is only 2.50%, further suggesting inefficiencies in generating returns. Additionally, the stock has underperformed significantly compared to the S&P 500 over various time frames, with a year-to-date decline of 23.35% versus a 2.44% gain for the index. This combination of high valuation ratios and poor relative performance reinforces the conclusion that MillerKnoll, Inc. is overvalued.