Is Reynolds Consumer Products, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for Reynolds Consumer Products, Inc. has moved from attractive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 13, an EV to EBITDA of 9.30, and a dividend yield of 4.23%.
In comparison to peers, Reynolds has a lower P/E ratio than The Clorox Co., which is considered very expensive with a P/E of 23.58, and e.l.f. Beauty, Inc., also very expensive at a P/E of 62.87. The company's ROE stands at 16.24%, indicating a solid return on equity relative to its peers. Despite recent stock performance lagging behind the S&P 500, with a year-to-date decline of 20.27% compared to the S&P's 2.44% increase, the current valuation suggests that Reynolds is positioned fairly within its market context.