Is Newell Brands, Inc. overvalued or undervalued?

As of 28 April 2023, the valuation grade for Newell Brands, Inc. has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly when considering its P/E ratio of 13, which is lower than the peer average of 14.46 for Newell Brands and significantly lower than Hillenbrand, Inc. at 43.91. Additionally, the EV to EBITDA ratio stands at 8.85, which is competitive compared to its peers, but the overall financial metrics suggest caution.
In terms of performance, Newell Brands has demonstrated significant underperformance relative to the S&P 500, with a year-to-date return of -41.77% compared to the index's 12.22%. The Price to Book Value of 0.91 and a dividend yield of 4.74% may provide some appeal, but the overall financial health, as indicated by a ROCE of 6.76% and ROE of 7.10%, raises concerns about the company's ability to generate adequate returns.