Is Kenvue Stock Too Pricey to Buy?
Kenvue's (NYSE: KVUE) business of selling consumer healthcare products seems bulletproof. People are going to need to buy its shampoos, moisturizers, and other goods at a regular interval, perhaps until the end of time.
But since most everyone in the market knows exactly that, its shares could well be pricing in all of that revenue -- or perhaps even more, which might not come to pass. So is the treadmill of high expectations forcing this company's share price beyond the realm of affordability, or is it worth paying up for the promise of a reliable business? Let's investigate.
There are a few pieces of evidence that Kenvue stock is a bit too expensive to be worth purchasing for most investors, starting with its high valuation. Its price-to-earnings (P/E) multiple is 37. The personal products industry has an average P/E of 30. So the market is currently valuing Kenvie's stock its shares are valued significantly higher than the average, which is likely a result of its valuable collection of consumer healthcare brands. But will ownership of those brands actually translate into robust earnings?
Source Fool.com
