SON Valuation

Sonoco Products Co

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40.570

+1.3(3.310%)1D

SON Relative Valuation

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

Historical Valuation

Sonoco Products Co (SON) is now in the Undervalued zone, suggesting that its current forward PE ratio of 6.89 is considered Undervalued compared with the five-year average of 11.53. The fair price of Sonoco Products Co (SON) is between 50.61 to 81.24 according to relative valuation methord. Compared to the current price of 40.57 USD , Sonoco Products Co is Undervalued By 19.83%.

Relative Value

Fair Zone

50.61-81.24

Current Price：40.57

19.83%

Undervalued

6.89

Trailing

Forward

7.08

EV/EBITDA

Sonoco Products Co. (SON) has a current EV/EBITDA of 7.08. The 5-year average EV/EBITDA is 8.32. The thresholds are as follows: Strongly Undervalued below 6.24, Undervalued between 6.24 and 7.28, Fairly Valued between 9.36 and 7.28, Overvalued between 9.36 and 10.40, and Strongly Overvalued above 10.40. The current Forward EV/EBITDA of 7.08 falls within the Undervalued range.

9.66

EV/EBIT

Sonoco Products Co. (SON) has a current EV/EBIT of 9.66. The 5-year average EV/EBIT is 11.48. The thresholds are as follows: Strongly Undervalued below 7.77, Undervalued between 7.77 and 9.63, Fairly Valued between 13.34 and 9.63, Overvalued between 13.34 and 15.19, and Strongly Overvalued above 15.19. The current Forward EV/EBIT of 9.66 falls within the Historic Trend Line -Fairly Valued range.

40.57

Sonoco Products Co. (SON) has a current PS of 40.57. The 5-year average PS is 0.94. The thresholds are as follows: Strongly Undervalued below -2.94, Undervalued between -2.94 and -1.00, Fairly Valued between 2.87 and -1.00, Overvalued between 2.87 and 4.81, and Strongly Overvalued above 4.81. The current Forward PS of 40.57 falls within the Strongly Overvalued range.

4.74

P/OCF

Sonoco Products Co. (SON) has a current P/OCF of 4.74. The 5-year average P/OCF is 8.53. The thresholds are as follows: Strongly Undervalued below 2.96, Undervalued between 2.96 and 5.74, Fairly Valued between 11.31 and 5.74, Overvalued between 11.31 and 14.10, and Strongly Overvalued above 14.10. The current Forward P/OCF of 4.74 falls within the Undervalued range.

7.48

P/FCF

Sonoco Products Co. (SON) has a current P/FCF of 7.48. The 5-year average P/FCF is 22.30. The thresholds are as follows: Strongly Undervalued below -53.38, Undervalued between -53.38 and -15.54, Fairly Valued between 60.14 and -15.54, Overvalued between 60.14 and 97.98, and Strongly Overvalued above 97.98. The current Forward P/FCF of 7.48 falls within the Historic Trend Line -Fairly Valued range.

Sonoco Products Co (SON) has a current Price-to-Book (P/B) ratio of 1.21. Compared to its 3-year average P/B ratio of 2.22 , the current P/B ratio is approximately -45.52% higher. Relative to its 5-year average P/B ratio of 2.62, the current P/B ratio is about -53.85% higher. Sonoco Products Co (SON) has a Forward Free Cash Flow (FCF) yield of approximately 7.44%. Compared to its 3-year average FCF yield of 6.29%, the current FCF yield is approximately 18.40% lower. Relative to its 5-year average FCF yield of 5.31% , the current FCF yield is about 40.11% lower.

1.21

P/B

Median3y

2.22

Median5y

2.62

7.44

FCF Yield

Median3y

6.29

Median5y

5.31

Competitors Valuation Multiple

The average P/S ratio for SON's competitors is 31.52, providing a benchmark for relative valuation. Sonoco Products Co Corp (SON) exhibits a P/S ratio of 40.57, which is 28.69% above the industry average. Given its robust revenue growth of 57.32%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Graphic Packaging Holding Co

Ardagh Metal Packaging SA

3.57

8.76%

2.13B

Performance Decomposition

Market capitalization of SON decreased by 20.93% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.06 to 5.77.

The secondary factor is the Revenue Growth, contributed 57.32%to the performance.

Overall, the performance of SON in the past 1 year is driven by Margin Expansion. Which is more sustainable.

57.32%

1.35B → 2.13B

Revenue Growth

88.56%

3.06 → 5.77

Margin Expansion

-166.81%

-32.78 → 21.90

P/E Change

-20.93%