Kontoor Brands, Inc. (KTB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+47.5%

$116.11

vs $78.71 price

Levered DCF

$414.86

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.25

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15×	19.27×	15.11×	9.09×	15.07×	34.08×	24.56×	8.69×
P/B	6.04×	11.83×	9.39×	8.89×	19.86×	27.31×	34.37×	1.33×
P/S	1.08×	1.81×	1.34×	0.85×	1.19×	1.1×	0.93×	0.83×
EV / EBITDA	11.15×	13.48×	11.76×	7.72×	11.26×	19.34×	16.25×	6.4×
Gross margin	46.7%	44.5%	41.7%	43.1%	44.7%	41.2%	39.4%	40.3%
Operating margin	14.1%	13.1%	12.2%	13.6%	11.4%	5.9%	6.6%	12.0%
Net margin	7.2%	9.4%	8.9%	9.3%	7.9%	3.2%	3.8%	9.5%
Current ratio	1.82×	2.7×	2.66×	2.23×	2×	2.18×	2.32×	3.15×
Debt / equity	2.29×	1.98×	2.26×	3.39×	5.73×	11.59×	14.5×	0.16×
Interest coverage	6.77×	8.38×	7.9×	10.21×	7.27×	2.48×	4.7×	283.92×
Dividend yield	3.4%	2.4%	3.1%	4.7%	3.2%	2.4%	2.7%	0.0%
Payout ratio	51.0%	45.6%	47.0%	42.2%	48.7%	80.6%	65.8%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	40.3%	61.4%	62.1%	97.9%	131.9%	80.2%	139.6%	15.3%
Return on invested capital	16.7%	21.8%	21.0%	23.3%	20.5%	9.7%	10.2%	12.2%
Return on assets	8.8%	14.9%	14.0%	15.5%	12.7%	4.4%	6.4%	10.7%
Free cash flow yield	16.6%	7.3%	9.1%	2.5%	8.4%	7.8%	31.1%	-5.2%
Earnings yield	6.7%	5.2%	6.6%	11.0%	6.6%	2.9%	4.1%	11.5%
Enterprise value	$4.6B	$5.2B	$4.1B	$3B	$3.6B	$3B	$3.3B	$2.5B
Net debt / EBITDA	2.88×	1.19×	1.79×	2.02×	2.07×	4.66×	4.45×	0.46×
Cash conversion cycle (days)	102	87	107	127	82	93	106	249