Is Reynolds Consumer Products, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Reynolds Consumer Products, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 13, which is lower than the peer average of approximately 15.06, and an EV to EBITDA ratio of 9.30, which also suggests a premium compared to peers like Coty, Inc. with an EV to EBITDA of 8.38. Additionally, the PEG ratio stands at 3.05, indicating that the stock may be overvalued relative to its growth prospects.
In comparison to its peers, Reynolds Consumer Products, Inc. shows a lower valuation than e.l.f. Beauty, Inc., which has a significantly higher P/E of 80.01, but is still more expensive than Coty, Inc. and Inter Parfums, Inc. The company's recent stock performance has been underwhelming, with a year-to-date return of -14.38%, significantly trailing the S&P 500's return of 12.22% during the same period, reinforcing the notion that the stock is currently overvalued.