Is Sonoco Products Co. overvalued or undervalued?

As of 18 February 2025, the valuation grade for Sonoco Products Co. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 10.67, and a ROE of 11.42%.
When compared to peers, Sonoco's P/E ratio of 16 is notably lower than that of International Paper Co. at 29.86 and Amcor Plc at 23.92, both of which are classified as expensive. However, it is higher than Packaging Corporation of America, which is rated attractive with a P/E of 19.54. Additionally, Sonoco's recent stock performance has lagged behind the S&P 500, with a year-to-date decline of 10.52% compared to a 2.44% gain for the index, reinforcing the notion that the stock is overvalued.