Is Sonoco Products Co. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Sonoco Products Co. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued based on its current metrics, with a P/E ratio of 16, a Price to Book Value of 1.82, and an EV to EBITDA of 10.67. In comparison, peers such as Ball Corp. and Avery Dennison Corp. have P/E ratios of 38.35 and 28.96, respectively, suggesting that Sonoco's valuation is not justified relative to its industry counterparts.
Moreover, Sonoco's recent stock performance has been underwhelming, with a year-to-date return of -3.75%, significantly lagging behind the S&P 500's return of 12.22% for the same period. Over the past three years, Sonoco's stock has declined by 21.34%, while the S&P 500 has gained 70.41%, further reinforcing the notion that the stock is overvalued in the current market environment.