Avery Dennison Corporation

NYSE:AVY Stock Report

Market Cap: US$16.3b

Avery Dennison Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 AVY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVY ($202.59) is trading below our estimate of fair value ($363.76)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

How does AVY's PE Ratio compare to its peers?

The above table shows the PE ratio for AVY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average57.5x
AMCR Amcor
19.7x11.7%US$15.1b
IP International Paper
49.1x28.5%US$20.6b
PKG Packaging Corporation of America
28.6x10.9%US$22.0b
SW Smurfit Westrock
132.8x32.8%US$29.3b
AVY Avery Dennison
24.2x10.7%US$16.3b

Price-To-Earnings vs Peers: AVY is good value based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (57.5x).

Price to Earnings Ratio vs Industry

How does AVY's PE Ratio compare vs other companies in the North American Packaging Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AVY 24.2xIndustry Avg. 19.7xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AVY is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the North American Packaging industry average (19.7x).

Price to Earnings Ratio vs Fair Ratio

What is AVY'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.

AVY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: AVY is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

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 AVY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$202.59
US$229.93
+13.5%
13.0%US$275.00US$169.00n/a13
Nov ’25US$206.11
US$230.93
+12.0%
13.2%US$275.00US$169.00n/a13
Oct ’25US$219.82
US$234.36
+6.6%
11.3%US$275.00US$166.00n/a12
Sep ’25US$221.85
US$234.52
+5.7%
11.3%US$275.00US$166.00n/a12
Aug ’25US$214.05
US$234.52
+9.6%
11.3%US$275.00US$166.00n/a12
Jul ’25US$213.36
US$230.03
+7.8%
12.1%US$260.00US$158.00n/a11
Jun ’25US$227.59
US$228.21
+0.3%
11.9%US$260.00US$158.00n/a11
May ’25US$217.83
US$225.75
+3.6%
11.4%US$260.00US$158.00n/a12
Apr ’25US$223.57
US$217.75
-2.6%
11.0%US$248.00US$154.00n/a12
Mar ’25US$216.72
US$217.75
+0.5%
11.0%US$248.00US$154.00n/a12
Feb ’25US$199.46
US$217.00
+8.8%
11.0%US$248.00US$154.00n/a12
Jan ’25US$202.16
US$203.27
+0.6%
12.0%US$247.00US$151.00n/a11
Dec ’24US$195.19
US$197.27
+1.1%
9.2%US$225.00US$151.00n/a11
Nov ’24US$173.87
US$195.00
+12.2%
9.4%US$225.00US$151.00US$206.1111
Oct ’24US$182.67
US$200.55
+9.8%
8.8%US$222.00US$155.00US$219.8211
Sep ’24US$189.02
US$198.51
+5.0%
8.1%US$222.00US$155.00US$221.8512
Aug ’24US$185.28
US$193.08
+4.2%
9.5%US$215.00US$142.00US$214.0512
Jul ’24US$171.80
US$195.50
+13.8%
9.6%US$219.00US$144.00US$213.3612
Jun ’24US$159.24
US$196.08
+23.1%
9.7%US$219.00US$144.00US$227.5912
May ’24US$174.68
US$194.58
+11.4%
9.6%US$219.00US$144.00US$217.8312
Apr ’24US$178.93
US$200.75
+12.2%
10.8%US$233.00US$144.00US$223.5712
Mar ’24US$181.12
US$200.75
+10.8%
10.8%US$233.00US$144.00US$216.7212
Feb ’24US$191.66
US$202.33
+5.6%
10.9%US$240.00US$147.00US$199.4612
Jan ’24US$181.00
US$197.58
+9.2%
11.1%US$241.00US$147.00US$202.1612
Dec ’23US$193.17
US$195.42
+1.2%
9.7%US$221.00US$147.00US$195.1912
Nov ’23US$168.78
US$193.33
+14.5%
10.2%US$221.00US$147.00US$173.8712

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

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