Is Sealed Air Corp. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Sealed Air Corp. has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, particularly when considering its P/E ratio of 18, which is lower than the peer average of 18.82, and its EV to EBITDA ratio of 11.19, which is also competitive compared to peers like Crown Holdings, Inc. with an EV to EBITDA of 10.30. Additionally, Sealed Air's ROE stands impressively at 53.06%, suggesting strong profitability relative to its equity.
In terms of peer comparison, Owens Corning has a P/E of 15.01, while Avery Dennison Corp. is at 28.96, highlighting that Sealed Air is positioned favorably within its industry. Despite a recent positive stock performance with a 1-week return of 6.45% compared to the S&P 500's 1.09%, the company has lagged over longer periods, with a 3-year return of -18.99% versus the S&P 500's 82.57%. This suggests that while the stock may currently be undervalued, its historical performance may warrant caution for potential investors.