Is Reynolds Consumer Products, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Reynolds Consumer Products, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. Based on the current metrics, the company appears to be overvalued. Key ratios include a P/E ratio of 13, an EV to EBITDA of 9.30, and a Price to Book Value of 2.15, which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to peers, Reynolds has a P/E ratio of 15.06, which is lower than The Clorox Co. at 21.04, but higher than Coty, Inc. at 25.97. This indicates that while it is less expensive than some competitors, it still does not present a compelling value proposition. Furthermore, the company's stock has underperformed relative to the S&P 500, with a year-to-date return of -9.45% compared to the index's 16.30%, reinforcing the notion that the stock may be overvalued.