Is Sealed Air Corp. overvalued or undervalued?

As of 22 January 2025, the valuation grade for Sealed Air Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 18, an EV to EBITDA of 11.19, and a ROE of 53.06%.
In comparison to its peers, Sealed Air Corp. has a lower P/E ratio than International Paper Co. at 29.86 and Amcor Plc at 23.92, both of which are considered expensive. Conversely, Packaging Corporation of America is rated attractive with a P/E of 19.54, suggesting that while Sealed Air is fairly valued, it remains competitive within its industry. Notably, Sealed Air's stock has underperformed relative to the S&P 500 over the past year, with a return of -14.42% compared to the index's 10.26%, reinforcing the notion that the stock may not be capturing its fair value in the current market.