Is WK Kellogg Co. overvalued or undervalued?

As of 7 August 2025, the valuation grade for WK Kellogg Co. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, including a P/E ratio of 8, a Price to Book Value of 4.14, and an EV to EBITDA of 6.80. In comparison, a peer such as the average competitor has a P/E of approximately 11.65, suggesting that WK Kellogg Co. is trading at a lower valuation multiple despite its higher ratios.
The company's return performance shows a year-to-date increase of 27.74%, significantly outperforming the S&P 500's return of 12.22% over the same period. However, the overall valuation metrics and the recent grade change suggest that WK Kellogg Co. is not justified at its current price level, reinforcing the conclusion that it is overvalued.