Kennametal Inc (KMT) is undervalued and Stanley Black & Decker Inc (SWK) is slightly overvalued.
Against our estimates of intrinsic value, KMT trades at the wider discount: a margin of safety of +59%, against -19% for SWK.
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 9.2% (average of 3 methods) values the shares at $77.17; the price of $92.13 is 19% above that value, and 75% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
| Metric | KMT | SWK |
|---|---|---|
| Verdict | Undervalued | Slightly overvalued |
| Price | $29.60 | $92.13 |
| Intrinsic value | $72.76 | $77.17 |
| Margin of safety | +59% | -19% |
| Leak Score | 100/100 (3/12) | 0/100 (2/12) |
| Market cap | $2.3B | $13.9B |
| Revenue growth, 5 years | 5.1% | 3.0% |
| Operating margin | 20.4% | 9.2% |
| Net margin | 14.5% | 4.1% |
| Return on equity | 24.0% | 6.9% |
| Debt to equity | 0.49 | 0.53 |
| P/E | 6.7x | 22.5x |
| Forward P/E | 12.0x | 14.4x |
| P/B | 1.4x | 1.6x |
| Dividend yield | 4.4% | 3.6% |