Is Avery Dennison Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Avery Dennison Corp. has moved from very expensive to fair. The company appears to be fairly valued based on its current 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, Ball Corp. has a P/E of 38.35, and Owens Corning shows a much lower P/E of 15.01, indicating that Avery Dennison is positioned reasonably within its peer group.
Despite this fair valuation, Avery Dennison has underperformed relative to the S&P 500, with a year-to-date return of -14.80% compared to the index's 13.30%. Over the past year, the stock has declined by 26.98%, while the S&P 500 has gained 14.08%, suggesting potential challenges ahead for the company.