Kennametal Inc (KMT) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Kennametal Inc stock $29.78, price $23.00, upside +29.5%, quality 68 out of 100. Rating: undervalued. Calculated from audited financials with 15 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $16.80 – $42.76 · fair‑value band $24.74 – $41.07 · the $23.00 price screens below the $29.78 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Kennametal Inc. engages in development and application of tungsten carbides, ceramics, and hard materials and solutions worldwide. It operates through two segments, Metal Cutting and Infrastructure.
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The Metal Cutting segment offers milling, hole making, turning, threading, and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships, and various types of industrial equipment under the Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD brands through its direct sales force, a network of independent and national distributors, integrated supplier channels, and digitally.
Its Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and metallurgical powders, such as compacts, nozzles, frac seats, and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling, and road milling; tungsten carbide powders for the oil and gas, aerospace, and process industries; high temperature critical wear components, tungsten penetrators, and armor solutions for aerospace and defense; and ceramics used by the packaging industry for metallization of films and papers under the Kennametal brand through a direct sales force and distributors.
The company was founded in 1938 and is based in Pittsburgh, Pennsylvania.
Stock analysis
Kennametal Inc (KMT) currently trades at $23.00, while our model-based Fair Value estimate is $29.78, implying the stock looks roughly 23% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $77.91 per share, and 11 of the 15 models we run sit above the $23.00 price.
Bear case: the Dividend Discount group reads lowest at $8.52, and 4 of the 15 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $24.74 (bear) to $41.07 (bull), the price of $23.00 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Kennametal Inc reported revenue of $2.4B in FY2026 versus $2.0B in FY2022, a compound +4.0%/yr. Reported net income was $342M in FY2026, compounding +24.0%/yr from FY2022.
Key figures
Market cap $2.0B Mid · P/E ratio 5.2 · P/S ratio 0.85 · EPS (TTM) $4.42 · Dividend yield 3.5% · Net margin 14.5% · Return on equity 23.9% · Return on assets (EBIT) 8.7% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 77 out of 100 (low confidence).
What moves the price
The share trades about 46% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −20% fair-value upside, at 29%, KMT screens cheaper than that median.
Fair Value models
Bear$24.74Fair Value $29.78Bull$41.07
Price $23.00 · Upside +29.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($1.30 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors bought shares worth $520,118, most recently on Nov 5, 2026. Over the same period, 4 people sold shares worth $2.5M. Buying cluster
BuySanjay ChowbeyPresident and CEO, Director2× since Sep 10, 2026: 14,000 shares, avg. $26.36$369,068Nov 5, 2026
SaleJudith L BacchusVice President3× since Feb 11, 2026: 54,215 shares, avg. $38.02$2.1MSep 8, 2026
BuyRichard J HarshmanDirector5,000 shares at $30.21$151,050Sep 4, 2026
SaleMichelle R KeatingVice President2× since Feb 11, 2026: 44,617 shares, avg. $35.88$1.6MSep 4, 2026
SaleSagar A PatelDirector29,499 shares at $33.50$988,203Jun 8, 2026
SaleCarlonda R. ReillyVice President2× since Mar 9, 2026: 25,423 shares, avg. $34.80$884,788Jun 2, 2026
SaleJohn Wayne WittVice President5,060 shares at $38.29$193,747Feb 19, 2026
Plus 30 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+19.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.1%
Start year 2021 (pandemic). Over 10 years: +1.2% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.8%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+29.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+26.4%
Dividend (yield on the price)3.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 30.0% / 21.9%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.6% → 20%
2026 sits 221% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Revenue per share shrinking 2.6%/yr over ~10Y (margin trend unclear) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Record earnings and margin gains from pricing and cost discipline form the main strength, while low return on equity and thin evidence of durable advantages remain the central weakness.
Main risk: Higher tungsten inventory costs threaten to keep free cash flow negative and put renewed pressure on cash generation.
Kennametal delivered record adjusted earnings in its latest quarter with strong beats and margin gains from pricing and cost discipline. Yet free cash flow turned negative amid higher tungsten inventory costs, and fiscal 2027 guidance points to more moderate volume growth. Will sustained end-market demand in aerospace and energy outweigh these working-capital pressures, or will margins and cash generation come under renewed strain?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Tools & Accessories · 129 stocks
Beats the industry median on 13/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+29.5% · Top 25%
Profitability
Return on equity (12 months)23.9% · Top 25%
Return on assets10.8% · Top 25%
Net margin (12 months)14.5% · Top 25%
Operating margin (12 months)41.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)42.6% · Top 25%
Dividend yield (12 months)3.5% · Top 25%
Balance sheet
Debt / equity0.44× · Highest 25%
Valuation Multiplesvs Tools & Accessories median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Kennametal Inc Fair Value". https://www.fairvalue-calculator.com/stock/KMT
Frequently asked questions
Is Kennametal Inc (KMT) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $29.78 versus a price of $23.00, about +29% upside (undervalued).
What is the fair value of KMT?
Our model-based fair value for Kennametal Inc is $29.78 (as of Nov 5, 2026), built from audited fundamentals. The current price: $23.00.
What is the quality score of KMT?
Kennametal Inc has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Kennametal Inc (KMT)?
Our model-based price target is the fair value of $29.78 (as of Nov 5, 2026) from 15 valuation models. Cautious scenario $24.74, optimistic scenario $41.07. It is a calculation from audited fundamentals, not an analyst target.
What is the Kennametal Inc stock forecast for 2026?
Our models put fair value at $29.78, about +29% upside versus a price of $23.00 (undervalued). Cautious scenario $24.74, optimistic scenario $41.07. The calculation is refreshed regularly with new filings.
What is the revenue of Kennametal Inc (KMT)?
Kennametal Inc reported trailing-twelve-month revenue of about $2.4B (latest available figure, as of Nov 5, 2026).
Does Kennametal Inc pay a dividend?
Kennametal Inc currently shows a dividend yield of 3.48% relative to its recent price (as of Nov 5, 2026).
How much is the dividend of Kennametal Inc (KMT) and when is the ex-dividend date?
Kennametal Inc pays a dividend of $0.8 per share a year, a dividend yield of 3.5%. The last ex-dividend date was Aug 11, 2026. A dividend has been paid every year since at least 1985. The payout ratio is 18.1% of earnings. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What is the intrinsic value of Kennametal Inc (KMT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Kennametal Inc it is $29.78 per share (as of Nov 5, 2026), against a price of $23.00. It is the blended result of 15 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is Kennametal Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, KMT trades below its calculated fair value: price $23.00, fair value $29.78, a gap of about +29% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of KMT?
No. The price is what the market pays today ($23.00); the fair value is what the company's own numbers justify ($29.78). For Kennametal Inc the two are $6.78 per share apart. That gap is exactly why we show both numbers side by side.
How much is Kennametal Inc worth?
The market values Kennametal Inc at about $2.0B (market capitalisation, as of Nov 5, 2026). Per share that is $23.00; our models calculate a fair value of $29.78 per share.
What do the bullish and bearish scenarios say about KMT?
Our models span a range for Kennametal Inc: cautious scenario $24.74, base $29.78, optimistic $41.07 per share (as of Nov 5, 2026, price $23.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KMT?
Kennametal Inc trades at a price-to-earnings ratio of 5.2 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $29.78 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings: 17.2. Other multiples: PEG 1.3, P/B 1.3, P/S 0.9, EV/EBITDA 4.2.
What is the PEG ratio of KMT?
The PEG ratio of Kennametal Inc is 1.25 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Kennametal Inc (KMT)?
Balance-sheet figures for Kennametal Inc (as of Nov 5, 2026): return on equity 23.9%, debt of 0.44 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is KMT from its 52-week high?
Kennametal Inc trades at $23.00, about 46% below its 52-week high of $42.76 and at the low of $23.00 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $29.78 is for.
Which stocks are comparable to Kennametal Inc?
From the same area (Industrials) we also value Techtronic Industries Company, Snap-on Incorporated, Stanley Black & Decker, Inc, Lincoln Electric Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Kennametal Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $23.00, calculated fair value $29.78 (+29%), Quality Score 68/100, from 15 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of KMT calculated?
We run Kennametal Inc through 15 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $29.78 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Kennametal Inc currently trades 23% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Kennametal Inc (KMT)?
The closing price on Nov 6, 2026 was $23.00. Our model-based fair value is $29.78, about +29% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Kennametal Inc right now?
The price is below even our cautious bear case ($24.74). The market is more pessimistic than our downside scenario. Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Kennametal Inc
How large is the market capitalisation of Kennametal Inc (KMT)?
The market capitalisation of Kennametal Inc is $2.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Kennametal Inc (KMT)?
The price-to-sales ratio of Kennametal Inc is 0.85 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Kennametal Inc (KMT)?
Earnings per share at Kennametal Inc are $4.42 (price ÷ EPS = P/E 5.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Kennametal Inc (KMT)?
The dividend yield of Kennametal Inc is 3.5% (payout 18.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Kennametal Inc (KMT)?
The net margin of Kennametal Inc is 14.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Kennametal Inc (KMT)?
The return on equity (ROE) of Kennametal Inc is 23.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Kennametal Inc (KMT)?
On an EBIT basis the return on assets of Kennametal Inc is 8.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Kennametal Inc (KMT)?
The operating margin of Kennametal Inc is 41.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Kennametal Inc (KMT)?
Revenue at Kennametal Inc is growing +42.6% versus a year earlier (3y avg +4.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Kennametal Inc (KMT)?
Earnings per share at Kennametal Inc are growing +929% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Kennametal Inc (KMT) generate?
The free cash flow of Kennametal Inc is −$80.9M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Kennametal Inc (KMT) carry?
The net debt of Kennametal Inc is $636M (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 5, 2026