Is World Kinect Corp. overvalued or undervalued?

As of 31 July 2025, the valuation grade for World Kinect Corp. has moved from fair 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 15 compared to a peer average of approximately 23.15, and an EV to EBITDA ratio of 4.59, which is significantly lower than peers like Applied Industrial Technologies, Inc. at 23.75. Additionally, the PEG ratio of 0.55 suggests that the stock may not be priced appropriately relative to its growth prospects.
In comparison to its peers, World Kinect Corp. has a lower ROE of 5.67% and a higher dividend yield of 265.80%, which may attract income-focused investors but does not compensate for its overall valuation risk. The company's recent stock performance has been underwhelming, with a year-to-date return of -2.14%, significantly lagging behind the S&P 500's 12.22% return, and a one-year return of -10.95% compared to the S&P 500's 17.14%. This further reinforces the notion that World Kinect Corp. is currently overvalued in the market.