* Note: Prices are in Million (M) USD.
Description:
Kenvue Inc. is a consumer health company globally.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,070 M
Debt : $0 M
EBITDA : $3,097 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Personal & household products & services
Industry: Household & personal products
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.24
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $2,017 M
Average Revenue: $14,949 M
Revenue Converted To Free Cash Flow (%): 13.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $15,455 M
Revenue 4 Years Ago (2020-12-31): $14,467 M
Last 5 Years Average Revenue Growth: 1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,923 M
Share Count 5 Years Ago (2020-12-31): $1,889 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.12
Trailing 12-Month Earnings Per Share (EPS): $0.83
Average Earnings Per Share (EPS): $0.98
Dividend Per Share (DPS): $1
Payout Ratio: 84%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 5 valid ROE years (max 20).Average ROE: 8.2%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $21
52-Week Low: $19
Threshold Price (15% Above 52-Week Low): $22
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $40,416 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Kenvue Inc. (KVUE) stock.
Last 2 Years Avg PE 18.89, Fair Value PE 15, Industry Based PE 23, Growth Based PE 1, RCFC Based PE 20.79, ROE Based PE 16.6, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 16.05. Value-Trades has assined P/E value 16.05. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.975.
The fair value of Kenvue Inc. (KVUE) stock should be (16.05 x $0.975) = $15.65.
