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, with a P/E ratio of 30, a Price to Book Value of 9.90, and an EV to EBITDA of 17.45. In comparison to peers, Ball Corp. has a higher P/E of 38.35, while Owens Corning shows a significantly lower P/E of 15.01, indicating a range of valuations within the industry.
Despite the fair valuation, Avery Dennison's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -14.80% compared to the index's positive return of 13.30%. Over the past year, the stock has declined by 26.98%, while the S&P 500 has gained 14.08%, suggesting that the market may still be cautious about the company's growth prospects.