Is WK Kellogg Co. overvalued or undervalued?

As of 30 May 2025, the valuation grade for WK Kellogg Co. has moved from expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. The P/E ratio stands at 8, which is competitive compared to the industry average, while the EV to EBITDA ratio is 6.80, indicating a reasonable valuation relative to earnings before interest, taxes, depreciation, and amortization.
In comparison with peers, WK Kellogg Co. has a P/E ratio of 8.10, which aligns closely with the industry standards, while its EV to EBITDA ratio is slightly lower than the peer average of 6.79. Notably, the company boasts a high ROE of 51.03% and a robust ROCE of 22.22%, suggesting strong profitability and efficient capital use. Although WK Kellogg Co. has underperformed against the S&P 500 on a year-to-date basis, this valuation suggests it may be a stable investment option within its sector.