KMT Valuation

Kennametal Inc

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21.630

+0.82(3.940%)1D

Overview
Forecast
Valuation
Earnings

KMT Relative Valuation

KMT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KMT is overvalued; if below, it's undervalued.

Historical Valuation

Kennametal Inc (KMT) is now in the Fair zone, suggesting that its current forward PE ratio of 19.09 is considered Fairly compared with the five-year average of 19.23. The fair price of Kennametal Inc (KMT) is between 17.50 to 27.73 according to relative valuation methord.

Relative Value

Fair Zone

17.50-27.73

Current Price：21.63

Fair

19.09

Trailing

Forward

7.42

EV/EBITDA

Kennametal Inc. (KMT) has a current EV/EBITDA of 7.42. The 5-year average EV/EBITDA is 8.77. The thresholds are as follows: Strongly Undervalued below 5.34, Undervalued between 5.34 and 7.06, Fairly Valued between 10.49 and 7.06, Overvalued between 10.49 and 12.20, and Strongly Overvalued above 12.20. The current Forward EV/EBITDA of 7.42 falls within the Historic Trend Line -Fairly Valued range.

13.96

EV/EBIT

Kennametal Inc. (KMT) has a current EV/EBIT of 13.96. The 5-year average EV/EBIT is 15.08. The thresholds are as follows: Strongly Undervalued below 7.61, Undervalued between 7.61 and 11.34, Fairly Valued between 18.81 and 11.34, Overvalued between 18.81 and 22.55, and Strongly Overvalued above 22.55. The current Forward EV/EBIT of 13.96 falls within the Historic Trend Line -Fairly Valued range.

0.79

Kennametal Inc. (KMT) has a current PS of 0.79. The 5-year average PS is 1.15. The thresholds are as follows: Strongly Undervalued below 0.57, Undervalued between 0.57 and 0.86, Fairly Valued between 1.43 and 0.86, Overvalued between 1.43 and 1.72, and Strongly Overvalued above 1.72. The current Forward PS of 0.79 falls within the Undervalued range.

6.43

P/OCF

Kennametal Inc. (KMT) has a current P/OCF of 6.43. The 5-year average P/OCF is 10.21. The thresholds are as follows: Strongly Undervalued below 2.16, Undervalued between 2.16 and 6.19, Fairly Valued between 14.24 and 6.19, Overvalued between 14.24 and 18.27, and Strongly Overvalued above 18.27. The current Forward P/OCF of 6.43 falls within the Historic Trend Line -Fairly Valued range.

8.49

P/FCF

Kennametal Inc. (KMT) has a current P/FCF of 8.49. The 5-year average P/FCF is 40.22. The thresholds are as follows: Strongly Undervalued below -224.62, Undervalued between -224.62 and -92.20, Fairly Valued between 172.64 and -92.20, Overvalued between 172.64 and 305.07, and Strongly Overvalued above 305.07. The current Forward P/FCF of 8.49 falls within the Historic Trend Line -Fairly Valued range.

Kennametal Inc (KMT) has a current Price-to-Book (P/B) ratio of 1.23. Compared to its 3-year average P/B ratio of 1.56 , the current P/B ratio is approximately -21.13% higher. Relative to its 5-year average P/B ratio of 1.82, the current P/B ratio is about -32.22% higher. Kennametal Inc (KMT) has a Forward Free Cash Flow (FCF) yield of approximately 7.56%. Compared to its 3-year average FCF yield of 7.74%, the current FCF yield is approximately -2.34% lower. Relative to its 5-year average FCF yield of 5.77% , the current FCF yield is about 31.00% lower.

1.23

P/B

Median3y

1.56

Median5y

1.82

7.56

FCF Yield

Median3y

7.74

Median5y

5.77

Competitors Valuation Multiple

The average P/S ratio for KMT's competitors is 1.29, providing a benchmark for relative valuation. Kennametal Inc Corp (KMT) exhibits a P/S ratio of 0.79, which is -38.63% above the industry average. Given its robust revenue growth of -4.94%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CECO Environmental Corp

Helios Technologies Inc

2.00

-3.37%

1.80B

Performance Decomposition

Market capitalization of KMT decreased by 15.06% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.74 to 17.34.

The secondary factor is the Revenue Growth, contributed -4.94%to the performance.

Overall, the performance of KMT in the past 1 year is driven by P/E Change. Which is more unsustainable.

-4.94%

543.31M → 516.45M

Revenue Growth

-36.36%

7.04 → 4.48

Margin Expansion

26.24%

13.74 → 17.34

P/E Change

-15.06%