PKG PE Ratio & Valuation,Is PKG Overvalued

PKG Relative Valuation

PKG'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, PKG is overvalued; if below, it's undervalued.

Historical Valuation

Packaging Corp of America (PKG) is now in the Fair zone, suggesting that its current forward PE ratio of 19.07 is considered Fairly compared with the five-year average of 17.28. The fair price of Packaging Corp of America (PKG) is between 156.33 to 205.21 according to relative valuation methord.

Relative Value

Fair Zone

156.33-205.21

Current Price：205.07

Fair

19.07

10.18

EV/EBITDA

Packaging Corp of America. (PKG) has a current EV/EBITDA of 10.18. The 5-year average EV/EBITDA is 9.73. The thresholds are as follows: Strongly Undervalued below 7.16, Undervalued between 7.16 and 8.44, Fairly Valued between 11.02 and 8.44, Overvalued between 11.02 and 12.31, and Strongly Overvalued above 12.31. The current Forward EV/EBITDA of 10.18 falls within the Historic Trend Line -Fairly Valued range.

15.02

EV/EBIT

Packaging Corp of America. (PKG) has a current EV/EBIT of 15.02. The 5-year average EV/EBIT is 13.54. The thresholds are as follows: Strongly Undervalued below 9.44, Undervalued between 9.44 and 11.49, Fairly Valued between 15.59 and 11.49, Overvalued between 15.59 and 17.64, and Strongly Overvalued above 17.64. The current Forward EV/EBIT of 15.02 falls within the Historic Trend Line -Fairly Valued range.

1.82

Packaging Corp of America. (PKG) has a current PS of 1.82. The 5-year average PS is 1.77. The thresholds are as follows: Strongly Undervalued below 1.28, Undervalued between 1.28 and 1.53, Fairly Valued between 2.02 and 1.53, Overvalued between 2.02 and 2.27, and Strongly Overvalued above 2.27. The current Forward PS of 1.82 falls within the Historic Trend Line -Fairly Valued range.

10.86

P/OCF

Packaging Corp of America. (PKG) has a current P/OCF of 10.86. The 5-year average P/OCF is 10.61. The thresholds are as follows: Strongly Undervalued below 7.64, Undervalued between 7.64 and 9.13, Fairly Valued between 12.09 and 9.13, Overvalued between 12.09 and 13.57, and Strongly Overvalued above 13.57. The current Forward P/OCF of 10.86 falls within the Historic Trend Line -Fairly Valued range.

20.09

P/FCF

Packaging Corp of America. (PKG) has a current P/FCF of 20.09. The 5-year average P/FCF is 17.77. The thresholds are as follows: Strongly Undervalued below 8.62, Undervalued between 8.62 and 13.19, Fairly Valued between 22.34 and 13.19, Overvalued between 22.34 and 26.92, and Strongly Overvalued above 26.92. The current Forward P/FCF of 20.09 falls within the Historic Trend Line -Fairly Valued range.

Packaging Corp of America (PKG) has a current Price-to-Book (P/B) ratio of 3.85. Compared to its 3-year average P/B ratio of 3.85 , the current P/B ratio is approximately 0.11% higher. Relative to its 5-year average P/B ratio of 3.77, the current P/B ratio is about 2.23% higher. Packaging Corp of America (PKG) has a Forward Free Cash Flow (FCF) yield of approximately 3.96%. Compared to its 3-year average FCF yield of 4.45%, the current FCF yield is approximately -11.07% lower. Relative to its 5-year average FCF yield of 4.32% , the current FCF yield is about -8.38% lower.

3.85

P/B

Median3y

3.85

Median5y

3.77

3.96

FCF Yield

Median3y

4.45

Median5y

4.32

Competitors Valuation Multiple

The average P/S ratio for PKG's competitors is 1.02, providing a benchmark for relative valuation. Packaging Corp of America Corp (PKG) exhibits a P/S ratio of 1.82, which is 77.65% above the industry average. Given its robust revenue growth of 6.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PKG decreased by 8.91% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.18B to 2.31B.

The secondary factor is the P/E Change, contributed -4.83%to the performance.

Overall, the performance of PKG in the past 1 year is driven by Revenue Growth. Which is more sustainable.

6.00%

2.18B → 2.31B

Revenue Growth

-10.08%

10.91 → 9.81

Margin Expansion

-4.83%

21.76 → 20.71

P/E Change

-8.91%

225.13 → 205.07

Mkt Cap Growth

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Frequently Asked Questions

Is Packaging Corp of America (PKG) currently overvalued or undervalued?

What is Packaging Corp of America (PKG) fair value?

PKG'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. The fair price of Packaging Corp of America (PKG) is between 156.33 to 205.21 according to relative valuation methord.

How does PKG's valuation metrics compare to the industry average?

What is the current P/B ratio for Packaging Corp of America (PKG) as of Dec 15 2025?

As of Dec 15 2025, Packaging Corp of America (PKG) has a P/B ratio of 3.85. This indicates that the market values PKG at 3.85 times its book value.

What is the current FCF Yield for Packaging Corp of America (PKG) as of Dec 15 2025?

As of Dec 15 2025, Packaging Corp of America (PKG) has a FCF Yield of 3.96%. This means that for every dollar of Packaging Corp of America’s market capitalization, the company generates 3.96 cents in free cash flow.

What is the current Forward P/E ratio for Packaging Corp of America (PKG) as of Dec 15 2025?

As of Dec 15 2025, Packaging Corp of America (PKG) has a Forward P/E ratio of 19.07. This means the market is willing to pay $19.07 for every dollar of Packaging Corp of America’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Packaging Corp of America (PKG) as of Dec 15 2025?

As of Dec 15 2025, Packaging Corp of America (PKG) has a Forward P/S ratio of 1.82. This means the market is valuing PKG at $1.82 for every dollar of expected revenue over the next 12 months.

PKG Valuation