Is Reynolds Consumer Products, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Reynolds Consumer Products, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its current metrics, including a P/E ratio of 13, an EV to EBITDA of 9.30, and a Price to Book Value of 2.15. In comparison, peers such as Coty, Inc. have a P/E of 25.97 and an EV to EBITDA of 8.38, while Inter Parfums, Inc. shows a P/E of 23.23 and an EV to EBITDA of 15.84, highlighting that Reynolds is priced higher relative to its earnings potential.
Despite a dividend yield of 4.23% and a solid ROE of 16.24%, the company's performance has lagged behind the S&P 500, with a year-to-date return of -12.45% compared to the index's 13.30%. Over the last five years, Reynolds has seen a decline of 24.36%, while the S&P 500 has increased by 91.29%, further supporting the conclusion that the stock is currently overvalued.