Kimberly-Clark Corporation (KMB) Fair Value & PE Analysis
Household & Personal Products · NASDAQ
Current Price
$102.29
PE Ratio (TTM)
16.0x
Intrinsic Value
$104.56
+2.2% margin of safety
What Is Kimberly-Clark Corporation's Fair Value?
As of 2026-06-12, applying a 16.0x earnings multiple to Kimberly-Clark Corporation's (KMB) earnings per share of $6.38 yields a fair value estimate of $104.56 per share, versus a market price of $102.29.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $82.75 to $129.8. 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 our PE model works · Recalculate in PE mode · KMB intrinsic value (DCF view)
Is Kimberly-Clark Corporation (KMB) Overvalued?
At $102.29, KMB trades about 2.2% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Strong Brand Recognition
KMB's iconic brands like Huggies and Kleenex hold significant consumer loyalty. This established trust translates into consistent demand and pricing power.
↑Scale and Distribution Network
The company's vast manufacturing and distribution infrastructure create significant barriers to entry. This allows for efficient product delivery and cost advantages.
↑Product Innovation Focus
KMB's commitment to innovation, as seen with volume plus mix growth, helps maintain product relevance and capture market share. This drives repeat purchases and customer engagement.
INVESTMENT RISKS
↓Inflationary Pressures
Persistent inflation impacts input costs and consumer spending power. This can erode margins and necessitate difficult pricing decisions.
↓Sluggish Growth Concerns
The company faces challenges in demonstrating sustained top-line growth. Investors are looking for clearer signs of expansion beyond current initiatives.
↓Retailer Influence
Strong retailer bargaining power can pressure KMB's margins and product placement. Navigating these relationships is crucial for market access.
Base case
KMB base case PE valuation
Intrinsic Value
$104.56
Margin of safety
+2.2%
Expected annual return
+0.4%
Base case assumptions: 4.1% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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, a Dallas, Texas-based entity established in 1872, operates as a global purveyor of personal hygiene and paper-based consumer goods. The company's business activities are structured into three distinct divisions. The Personal Care segment focuses on products like disposable infant diapers, training pants, baby wipes, and items designed for feminine and incontinence care. Well-known brands under this umbrella include Huggies, Kotex, and Depend, among others. Its Consumer Tissue segment supplies household essentials such as facial tissues, toilet paper, and paper towels, distributed under popular names like Kleenex, Scott, and Viva. The K-C Professional division caters to commercial and institutional clients, offering industrial wipers, specialized tissues, towels, apparel, soaps, and sanitizers, with brands including WypAll and Kimtech. Kimberly-Clark distributes its products intended for home use across a wide array of retail channels, including supermarkets, large-scale retailers, pharmacies, club stores, and e-commerce platforms. For its professional and commercial offerings, the company directly serves sectors such as manufacturing, hospitality, office buildings, and food services, as well as through various distributors and online sales.
Financial Metrics — KMB PE Stock Valuation Data
PE Ratio (TTM)
16.0x
PEG Ratio
n/m
Earnings Yield
6.24%
ROE (TTM)
143.6%
Revenue/Share (TTM)
$49.83
Dividend Yield
4.97%
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 16.0x combined with a PEG ratio of -1.19 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 (16.0x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (-1.19) 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 -1.19, calculated by dividing the PE ratio (16.0x) 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.