Is Ball Corp. overvalued or undervalued?

As of 4 February 2025, the valuation grade for Ball Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its P/E ratio of 39, which is substantially higher than the industry average. Additionally, Ball Corp. has a Price to Book Value of 6.19 and an EV to EBITDA ratio of 22.19, both of which suggest that the stock is trading at a premium compared to its peers.
In comparison, Avery Dennison Corp., a peer in the industry, has a P/E ratio of 29.05 and an EV to EBITDA of 16.95, highlighting the disparity in valuation between the two companies. Furthermore, Ball Corp.'s PEG ratio stands at 0.93, which, while below 1, does not compensate for the high P/E ratio. The recent stock performance shows that Ball Corp. has underperformed against the S&P 500 over the past year, with a return of -6.56% compared to the S&P 500's 10.26%, reinforcing the notion that the stock is overvalued.