Kennametal Inc (KMT) is undervalued and RBC Bearings Inc (RBC) is overvalued.
Against our estimates of intrinsic value, KMT trades at the wider discount: a margin of safety of +59%, against -74% for RBC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $72.76; the price of $29.60 is 59% below that value, and 74% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 11.0% (average of 3 methods) values the shares at $287.23; the price of $499.88 is 74% above that value, and 71% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | KMT | RBC |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $29.60 | $499.88 |
| Intrinsic value | $72.76 | $287.23 |
| Margin of safety | +59% | -74% |
| Leak Score | 100/100 (3/12) | 27/100 (3/12) |
| Market cap | $2.3B | $15.8B |
| Revenue growth, 5 years | 5.1% | 25.2% |
| Operating margin | 20.4% | 25.2% |
| Net margin | 14.5% | 16.4% |
| Return on equity | 24.0% | 9.8% |
| Debt to equity | 0.49 | 0.25 |
| P/E | 6.7x | 49.4x |
| Forward P/E | 12.0x | 30.0x |
| P/B | 1.4x | 4.6x |
| Dividend yield | 4.4% | — |