Is Reynolds Consumer Products, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Reynolds Consumer Products, Inc. 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. The P/E ratio stands at 13, while the industry average P/E is significantly higher, suggesting that the stock may not be priced appropriately relative to its peers. Additionally, the EV to EBITDA ratio is 9.30, which is lower than the peer average of 9.9970, further supporting the notion of overvaluation.
In comparison to its peers, The Clorox Co. has a P/E ratio of 21.0407, and Inter Parfums, Inc. shows a more attractive valuation with a P/E of 23.2326. Reynolds Consumer Products, Inc. also has a PEG ratio of 3.05, indicating that its growth prospects may not justify its current price. Notably, the company's stock has underperformed against the S&P 500, with a year-to-date return of -8.93% compared to the S&P 500's 16.30%, reinforcing the view that the stock may be overvalued in the current market context.