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

As of 6 February 2024, the valuation grade for O-I Glass, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly when considering its P/E ratio of 13, which is higher than the industry average of 17.19, and an EV to EBITDA ratio of 7.11, which is lower than peers like Owens Corning at 8.72. Additionally, O-I Glass has a Price to Book Value of 2.28, suggesting a premium over its book value compared to its peers.
In comparison to its industry, O-I Glass's return metrics also raise concerns; while it has a year-to-date return of 18.17%, this is less than the S&P 500's return of 12.22% over the same period, and its 3-year return of -2.44% starkly contrasts with the S&P 500's impressive 70.41%. This performance, coupled with its valuation ratios, reinforces the conclusion that O-I Glass, Inc. is overvalued relative to its peers and the broader market.