KKR is now overvalued and could go down -24%

Based on our analysis, KKR & Co. has received an overvalued rating of 2 out of 5 stars from Cashu. The company's financial ratios indicate that it is trading at a premium compared to its sector, which raises concerns about its valuation. The Price-to-Earnings (PE) ratio for KKR & Co. stands at 49.61, significantly higher than the sector average of 12.76. This suggests that investors are paying much more for each dollar of earnings compared to other companies in the same industry, indicating potential overvaluation. Additionally, the Price-to-Book (PB) ratio is recorded at 3.21, compared to the sector average of 1.08. A higher PB ratio means that investors are valuing KKR & Co.’s assets at a much greater level than its peers, which can signal an inflated stock price. Furthermore, KKR & Co. has a dividend yield of only 0.41, while the sector averages 2.90. A lower dividend yield may indicate that the company is not returning enough capital to shareholders relative to its stock price, which can be unattractive for income-focused investors. While KKR & Co. shows strong performance in net profit margin, return on equity, and return on assets, these metrics alone may not justify its high valuation compared to the sector. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.