Packaging Corporation of America

NYSE:PKG Stock Report

Market Cap: US$19.0b

Packaging Corporation of America Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Share Price vs Fair Value

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

Discounted Cash Flow
Simply Wall St
US$411.23
Fair Value
48.3% undervalued intrinsic discount
7
Number of Analysts


Key Valuation Metric

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

Key metric:

The above table shows the Price to Earnings ratio for PKG. This is calculated by dividing PKG's market cap by their current earnings.
What is PKG's PE Ratio?
PE Ratio23.7x
EarningsUS$799.50m
Market CapUS$18.96b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PKG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average54.2x
IP International Paper
52.7x24.5%US$29.3b
AVY Avery Dennison
21.2x8.2%US$14.9b
AMCR Amcor
18.3x7.8%US$14.0b
SW Smurfit Westrock
124.5x26.5%US$27.5b
PKG Packaging Corporation of America
23.7x8.9%US$19.0b


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PKG 23.7xIndustry Avg. 18.3xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies


Price to Earnings Ratio vs Fair Ratio

What is PKG'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.

PKG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.7x
Fair PE Ratio17.9x


Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 7 Analysts
US$225.65
Fair Value
5.8% undervalued intrinsic discount
7
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/02 03:04
End of Day Share Price 2025/01/31 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Packaging Corporation of America is covered by 32 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ColemanArgus Research Company
Ishan MajumdarBaptista Research
Scott GaffnerBarclays