Is The Clorox Co. overvalued or undervalued?

As of 24 October 2025, the valuation grade for The Clorox Co. has moved from attractive to fair. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 25, which is higher than the peer average of approximately 21.04 for similar companies like Kimberly-Clark Corp. and Kenvue, Inc. Additionally, the EV to EBITDA ratio stands at 14.65, which also exceeds the peer average, indicating a premium valuation relative to its peers.
The Clorox Co. shows a PEG ratio of 0.32, suggesting that it may be undervalued on a growth-adjusted basis, but this is overshadowed by its high P/E and EV to EBITDA ratios. Notably, the company's recent stock performance has lagged significantly behind the S&P 500, with a YTD return of -28.67% compared to the S&P 500's 15.47%. This stark contrast reinforces the notion that The Clorox Co. is currently overvalued in the market.