Is O-I Glass, Inc. overvalued or undervalued?

As of 6 February 2024, the valuation grade for O-I Glass, Inc. has moved from attractive to risky, indicating a shift in the perceived stability and growth potential of the company. Based on the current analysis, O-I Glass appears to be overvalued. The company has a P/E ratio of 13, which is relatively in line with its peers, but its EV to EBITDA ratio of 7.11 suggests that it may not be capturing sufficient earnings relative to its enterprise value.
In comparison to its peers, O-I Glass has a P/E ratio of 13.25, while the industry average is not specified but typically hovers around similar values. Additionally, the company's ROE stands at 17.16%, which is respectable but may not justify its current price given the risks associated with its valuation grade. Notably, while O-I Glass has outperformed the S&P 500 over the past year with a return of 29.64% compared to 10.26%, this performance may not be sustainable in light of the recent downgrade in valuation.