Avery Dennison Corporation

LSE:0HJR Stock Report

Market Cap: US$16.3b

Avery Dennison Valuation

Is 0HJR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0HJR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HJR ($201.62) is trading below our estimate of fair value ($367.41)

Significantly Below Fair Value: 0HJR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HJR?

Key metric: As 0HJR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HJR. This is calculated by dividing 0HJR's market cap by their current earnings.
What is 0HJR's PE Ratio?
PE Ratio24.2x
EarningsUS$674.00m
Market CapUS$16.28b

Price to Earnings Ratio vs Peers

How does 0HJR's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HJR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
SMDS DS Smith
21.3x8.8%UK£8.2b
ANTO Antofagasta
26.9x18.3%UK£16.4b
MNDI Mondi
16.2x15.8%UK£5.3b
FRES Fresnillo
24.3x33.0%UK£4.8b
0HJR Avery Dennison
24.2x10.7%US$16.3b

Price-To-Earnings vs Peers: 0HJR is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

How does 0HJR's PE Ratio compare vs other companies in the European Packaging Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0HJR 24.2xIndustry Avg. 18.6xNo. of Companies6PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HJR is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the European Packaging industry average (18.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0HJR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0HJR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: 0HJR is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0HJR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$201.62
US$229.93
+14.0%
13.0%US$275.00US$169.00n/a13
Nov ’25US$207.10
US$230.93
+11.5%
13.2%US$275.00US$169.00n/a13
Oct ’25US$219.91
US$234.36
+6.6%
11.3%US$275.00US$166.00n/a12
Sep ’25US$220.14
US$234.52
+6.5%
11.3%US$275.00US$166.00n/a12
Aug ’25US$213.51
US$234.52
+9.8%
11.3%US$275.00US$166.00n/a12
Jul ’25US$213.06
US$230.03
+8.0%
12.1%US$260.00US$158.00n/a11
Jun ’25US$225.20
US$228.21
+1.3%
11.9%US$260.00US$158.00n/a11
May ’25US$218.66
US$225.75
+3.2%
11.4%US$260.00US$158.00n/a12
Apr ’25US$223.78
US$217.75
-2.7%
11.0%US$248.00US$154.00n/a12
Mar ’25US$216.82
US$217.75
+0.4%
11.0%US$248.00US$154.00n/a12
Feb ’25US$196.89
US$217.00
+10.2%
11.0%US$248.00US$154.00n/a12
Jan ’25US$201.97
US$203.27
+0.6%
12.0%US$247.00US$151.00n/a11
Dec ’24US$195.89
US$197.27
+0.7%
9.2%US$225.00US$151.00n/a11
Nov ’24US$172.15
US$195.00
+13.3%
9.4%US$225.00US$151.00US$207.1011
Oct ’24US$184.14
US$200.55
+8.9%
8.8%US$222.00US$155.00US$219.9111
Sep ’24US$190.00
US$198.51
+4.5%
8.1%US$222.00US$155.00US$220.1412
Aug ’24US$183.72
US$193.08
+5.1%
9.5%US$215.00US$142.00US$213.5112
Jul ’24US$170.01
US$195.50
+15.0%
9.6%US$219.00US$144.00US$213.0612
Jun ’24US$159.88
US$196.08
+22.6%
9.7%US$219.00US$144.00US$225.2012
May ’24US$174.57
US$194.58
+11.5%
9.6%US$219.00US$144.00US$218.6612
Apr ’24US$175.47
US$200.75
+14.4%
10.8%US$233.00US$144.00US$223.7812
Mar ’24US$183.35
US$200.75
+9.5%
10.8%US$233.00US$144.00US$216.8212
Feb ’24US$187.17
US$202.33
+8.1%
10.9%US$240.00US$147.00US$196.8912
Jan ’24US$182.93
US$197.58
+8.0%
11.1%US$241.00US$147.00US$201.9712
Dec ’23US$192.78
US$195.42
+1.4%
9.7%US$221.00US$147.00US$195.8912
Nov ’23US$171.13
US$193.33
+13.0%
10.2%US$221.00US$147.00US$172.1512

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Elkem

NOK 11.6b

Engages in the provision of advanced material solutions worldwide.

0SFN

NOK 18.05

7D

0.6%

1Y

-0.6%

Navigator Company

€2.5b

Manufactures and markets pulp and paper products worldwide.

0KLO

€3.53

7D

-2.7%

1Y

-6.7%

NV Bekaert

€1.7b

Provides steel wire transformation and coating technologies worldwide.

0OQJ

€32.30

7D

-1.0%

1Y

-22.3%