Is Avery Dennison Corp. overvalued or undervalued?

As of 17 July 2025, the valuation grade for Avery Dennison Corp. has moved from expensive to fair. The company is currently fairly valued based on its valuation metrics. Key ratios include a P/E ratio of 30, an EV to EBITDA of 17.45, and a Price to Book Value of 9.90. In comparison to peers, Ball Corp. has a higher P/E ratio of 38.35, while Owens Corning shows a lower P/E of 15.01, indicating that Avery Dennison is positioned reasonably within its industry.
Despite the fair valuation, Avery Dennison has underperformed against the S&P 500 in recent periods, with a year-to-date return of -11.80% compared to the S&P 500's 12.22%. Over the past five years, however, the company has delivered a positive return of 31.53%, although this is significantly lower than the S&P 500's 96.61% return in the same timeframe.