Is Amcor Plc overvalued or undervalued?

As of 4 August 2025, Amcor Plc's valuation grade has moved from expensive to very attractive, indicating a significant shift in its market position. The company appears to be undervalued, with a P/E ratio of 24, which is lower than the peer average of approximately 22.17 for similar companies like Packaging Corporation of America, which has a P/E of 22.00. Additionally, Amcor's EV to EBITDA ratio stands at 14.71, while its peers such as International Paper Co. show a much higher ratio of 18.91, further suggesting that Amcor may be undervalued relative to its competitors.
The dividend yield of 263.03% and a ROE of 22.74% highlight the company's strong profitability and return on equity, reinforcing the attractiveness of its valuation. However, it is important to note that Amcor's stock has underperformed against the S&P 500, with a YTD return of -11.69% compared to the index's 12.22%, and a 1Y return of -24.52% versus 17.14% for the S&P 500, which may reflect broader market challenges or company-specific issues.