Kimberly-Clark Corporation (KMB) Fair Value & PE Analysis
Household & Personal Products · NASDAQ
Current Price
$113.21
PE Ratio (TTM)
17.8x
Intrinsic Value
$115.65
+2.1% margin of safety
What Is Kimberly-Clark Corporation's Fair Value?
As of 2026-07-29, applying a 18.0x earnings multiple to Kimberly-Clark Corporation's (KMB) earnings per share of $6.38 yields a fair value estimate of $115.65 per share, versus a market price of $113.21.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $92.66 to $142.18. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · KMB intrinsic value (DCF view)
Is Kimberly-Clark Corporation (KMB) Overvalued?
At $113.21, KMB trades about 2.1% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Strong Brand Recognition and Loyalty
Kimberly-Clark's established brands like Huggies and Kleenex benefit from deep consumer trust and habitual purchasing. This creates significant brand equity that is difficult for competitors to replicate.
↑Extensive Distribution Network
The company possesses a vast and efficient global distribution system. This allows for broad market penetration and ensures product availability, creating a barrier for smaller rivals.
↑Economies of Scale in Manufacturing
Large-scale production facilities enable Kimberly-Clark to achieve cost efficiencies. This competitive cost structure is challenging for new entrants to match.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in the cost of raw materials like pulp and energy can significantly impact profitability. KMB's ability to pass these costs on is not guaranteed.
↓Shifting Consumer Preferences
Changes in consumer demand towards more sustainable or specialized products could disrupt KMB's traditional offerings. Failure to adapt quickly poses a risk.
↓New Entrants and Disruptive Innovation
The emergence of new, agile competitors or innovative product technologies could challenge KMB's established market position. The recent launch of Arbex highlights this potential.
Base case
KMB base case PE valuation
Intrinsic Value
$115.65
Margin of safety
+2.1%
Expected annual return
+0.4%
Base case assumptions: 4.4% annual earnings growth, 18x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the KMB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Kimberly-Clark Corporation respond.
Open PE Calculator for KMBCompany Overview
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care products in the United States. It operates in two segments, North America and International Personal Care. The North America segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers, and other related products under the Huggies, Pull-Ups, Goodnites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall , and other brand names. Its International Personal Care segment provides baby and child care, adult care and feminine care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Kotex, Goodfeel, Intimus, Depend, and other brand names. The company sells its household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce. It also sells its professional use products through distributors, directly to manufacturing, lodging, office building, food service, and high-volume public facilities, and through e-commerce. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.
Financial Metrics — KMB PE Stock Valuation Data
PE Ratio (TTM)
17.8x
PEG Ratio
n/m
Earnings Yield
5.64%
ROE (TTM)
143.6%
Revenue/Share (TTM)
$49.83
Dividend Yield
4.49%
Debt/Equity
3.94x
Frequently Asked Questions
What is the PE ratio of KMB?
The trailing twelve-month PE ratio of KMB reflects how much investors pay per dollar of Kimberly-Clark Corporation's earnings. This metric is most useful when compared to Household & Personal Products peers and the company's own historical range.
Is KMB overvalued based on PE ratio?
KMB's PE of 17.8x combined with a PEG ratio of -1.32 provides a growth-adjusted perspective. KMB has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Household & Personal Products, a DCF analysis may be more appropriate.
How do I value KMB stock using PE ratio?
To value Kimberly-Clark Corporation using PE: (1) Compare the current PE (17.8x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (-1.32) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of KMB?
KMB's PEG ratio is -1.32, calculated by dividing the PE ratio (17.8x) by the expected earnings growth rate. Because KMB has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for KMB stock valuation?
PE ratio gives a quick relative read — how KMB is priced versus Household & Personal Products peers. DCF provides an absolute value based on projected free cash flows. For KMB, with a strong ROE of 143.6%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See KMB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value KMB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.