Is Amcor Plc overvalued or undervalued?

As of 18 June 2025, the valuation grade for Amcor Plc has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a P/E ratio of 24, which is higher than the industry average of approximately 23.92. Additionally, Amcor's Price to Book Value stands at 5.46, and its EV to EBITDA is 14.71, both of which suggest a premium compared to its peers.
In comparison to notable competitors, Packaging Corporation of America is rated attractive with a P/E of 19.54 and an EV to EBITDA of 10.48, while International Paper Co. is also considered expensive with a P/E of 29.86. The stark contrast in valuations highlights Amcor's overvaluation in the current market. Furthermore, Amcor's recent stock performance has underperformed against the S&P 500, with a year-to-date return of -3.61% compared to the index's 2.44%, reinforcing the notion that the stock may be overpriced relative to its growth prospects.