AVY Relative Valuation
AVY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AVY is overvalued; if below, it's undervalued.
Historical Valuation
Avery Dennison Corp (AVY) is now in the Fair zone, suggesting that its current forward PE ratio of 17.28 is considered Fairly compared with the five-year average of 20.11. The fair price of Avery Dennison Corp (AVY) is between 175.25 to 217.89 according to relative valuation methord.
Relative Value
Fair Zone
175.25-217.89
Current Price：175.59
Fair
17.22
PE
1Y
3Y
5Y
Trailing
Forward
10.96
EV/EBITDA
Avery Dennison Corp. (AVY) has a current EV/EBITDA of 10.96. The 5-year average EV/EBITDA is 12.86. The thresholds are as follows: Strongly Undervalued below 10.20, Undervalued between 10.20 and 11.53, Fairly Valued between 14.19 and 11.53, Overvalued between 14.19 and 15.52, and Strongly Overvalued above 15.52. The current Forward EV/EBITDA of 10.96 falls within the Undervalued range.
14.09
EV/EBIT
Avery Dennison Corp. (AVY) has a current EV/EBIT of 14.09. The 5-year average EV/EBIT is 16.29. The thresholds are as follows: Strongly Undervalued below 12.92, Undervalued between 12.92 and 14.60, Fairly Valued between 17.97 and 14.60, Overvalued between 17.97 and 19.65, and Strongly Overvalued above 19.65. The current Forward EV/EBIT of 14.09 falls within the Undervalued range.
1.47
PS
Avery Dennison Corp. (AVY) has a current PS of 1.47. The 5-year average PS is 1.74. The thresholds are as follows: Strongly Undervalued below 1.27, Undervalued between 1.27 and 1.51, Fairly Valued between 1.98 and 1.51, Overvalued between 1.98 and 2.22, and Strongly Overvalued above 2.22. The current Forward PS of 1.47 falls within the Undervalued range.
10.25
P/OCF
Avery Dennison Corp. (AVY) has a current P/OCF of 10.25. The 5-year average P/OCF is 14.09. The thresholds are as follows: Strongly Undervalued below 8.89, Undervalued between 8.89 and 11.49, Fairly Valued between 16.70 and 11.49, Overvalued between 16.70 and 19.30, and Strongly Overvalued above 19.30. The current Forward P/OCF of 10.25 falls within the Undervalued range.
12.86
P/FCF
Avery Dennison Corp. (AVY) has a current P/FCF of 12.86. The 5-year average P/FCF is 19.32. The thresholds are as follows: Strongly Undervalued below 10.25, Undervalued between 10.25 and 14.79, Fairly Valued between 23.86 and 14.79, Overvalued between 23.86 and 28.39, and Strongly Overvalued above 28.39. The current Forward P/FCF of 12.86 falls within the Undervalued range.
Avery Dennison Corp (AVY) has a current Price-to-Book (P/B) ratio of 6.16. Compared to its 3-year average P/B ratio of 7.02 , the current P/B ratio is approximately -12.22% higher. Relative to its 5-year average P/B ratio of 7.80, the current P/B ratio is about -21.04% higher. Avery Dennison Corp (AVY) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.18%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.34% , the current FCF yield is about -100.00% lower.
6.14
P/B
Median3y
7.02
Median5y
7.80
5.04
FCF Yield
Median3y
4.18
Median5y
4.34
Competitors Valuation Multiple
The average P/S ratio for AVY's competitors is , providing a benchmark for relative valuation. Avery Dennison Corp Corp (AVY) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.47%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AVY decreased by 6.50% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.52 to 19.86.
The secondary factor is the Revenue Growth, contributed 1.47%to the performance.
Overall, the performance of AVY in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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