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Avery Dennison Corp (AVY) Fair Value & Analysis

Consumer Cyclical · US · Market cap $12.0B · ISIN US0536111091

What is Avery Dennison Corp really worth?

AD Avery Dennison Corp logo Avery Dennison Corp AVY · US
Price$173.03
Fair Value$113.05
Upside−34.7%
Quality66/100

A solid business, but trading 53% above our fair value of $113.05.

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Strengths

Healthy Growth (revenue 5y +4.9 %/yr)
Moderate debt · generates free cash flow

Risks

!Thin margins · 7.7% net margin
!Mixed vs. peers (7/15)
!Moderate moat 64/100
!Weak on balance sheet: 28 out of 100

For context

·2.17% dividend yield
Evidence: High Range $61.93 – $171.07

Fair value as of: Sep 3, 2026

From 25 valuation models · updated yesterday

Share price −0.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide ($61.93 to $171.07). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

$220.35 $142.37 Fair Value $113.05 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range $142.37 – $220.35 · fair‑value band $61.93 – $171.07 · the $173.03 price screens above the $113.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

Avery Dennison Corp (AVY) currently trades at $173.03, while our model-based Fair Value estimate is $113.05, implying the stock looks roughly 53.0% overvalued today. The Quality Score stands at 66/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Multiples group reads highest at a median of $134.34 per share, and 0 of the 25 models we run sit above the $173.03 price. Bear case: the Asset-Based group reads lowest at $19.64, and 25 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Avery Dennison Corp generated revenue of $9.0B at a net margin of 7.7%. Revenue grew 7.0% year over year. It earns a return on equity of 30.9%. Net debt stands at $3.5B. Fundamentals as of Sep 3, 2026

Our scenario range runs from $61.93 (bear case) to $171.07 (bull case); at $173.03, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 12% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −39% fair-value upside, at −35%, AVY screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $3.39 per share, which is 3.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $59.15 $101.51 $161.40 79
Growth DCF $62.18 $101.83 $155.64 77
Owner Earnings $60.94 $104.08 $165.07 75
All 25 models by family
DCF Models
FCF DCF best evidence $59.15 $101.51 $161.40 79
Owner Earnings $60.94 $104.08 $165.07 75
5Y Revenue Exit $68.87 $127.25 $199.01 71
5Y EBITDA Exit $67.89 $125.51 $189.39 74
5Y P/E Exit $60.24 $111.99 $163.05 70
10Y Revenue Exit $60.85 $112.16 $175.29 65
10Y EBITDA Exit $63.70 $111.00 $168.32 67
10Y P/E Exit $58.93 $101.89 $149.24 63
Earnings-Based
Graham-Dodd $61.16 $137.55 $175.94 65
PEG = 1.0 $22.48 $32.11 $41.74 57
EPV $68.61 $86.60 $102.34 74
Dividend Discount
Gordon GGM $34.62 $56.35 $81.20 68
DDM Multi-Stage $34.62 $50.53 $68.32 67
Multiples
P/E Multiple $114.68 $152.91 $191.14 63
P/S Multiple $114.68 $152.91 $191.14 58
P/B Multiple $65.95 $87.94 $109.92 55
EV/EBIT $112.22 $162.73 $213.24 65
EV/EBITDA $89.16 $131.99 $174.81 66
EV/Revenue $82.25 $134.34 $186.44 52
Asset-Based
NCAV (Graham) $14.66 $19.64 $29.31 54
Growth DCF
Growth DCF $62.18 $101.83 $155.64 77
Rev-Margin DCF $68.87 $128.17 $190.93 71
Economic Profit
Residual Income $59.20 $78.85 $471.44 64
ROIC Compounder $72.51 $97.74 $125.30 72
Growth Earnings
Growth-Adj P/E $87.02 $124.31 $161.60 67

Widest divergence: Multiples ($134.34) versus Asset-Based ($19.64). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 19.5
P/S ratio 1.52 P/E × margin
EPS (TTM) $8.87 price ÷ EPS = P/E 19.5
Dividend yield 2.2% payout 42.4%
Net margin 7.8% FY2025
Return on equity 30.9% TTM
More key figures
Profitability
Return on assets (EBIT) 12.8% avg 5y
Operating margin 12.6% TTM
Growth
Revenue (TTM) $9.0B TTM
Revenue growth (YoY) +7.0% 3y avg −0.7%
EPS growth (YoY) +4.3%
Balance sheet & cash flow
Free cash flow $712M FY2025
Net debt $3.5B FY2025 · ≈ 5.0 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 62 · Market factors (momentum, volatility) 54

Profitability 64
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the North America, Europe, the Middle East, North Africa, Asia, and Latin America.

Full company description

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the North America, Europe, the Middle East, North Africa, Asia, and Latin America. It offers pressure-sensitive label materials, which consist of papers, plastic films, and metal foils; performance tapes products, including mechanical fasteners, which are precision-extruded and injection-molded plastic devices; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, and Avery Dennison brands. The company provides graphics and reflective products that include films and other products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation markets; sign shops, commercial printers, and designers for pressure-sensitive materials; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it offers branding solutions, which include brand embellishments, graphic tickets, tags, labels, and sustainable packaging; information solutions, such as item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media, and brand protection and security solutions; and shelf-edge productivity and media solutions under the Vestcom brand names, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. The company was founded in 1935 and is headquartered in Mentor, Ohio.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Avery Dennison Corp reported revenue of $8.9B in FY2025 versus $8.4B in FY2021, a compound +1.3%/yr. Reported net income was $688M in FY2025, compounding −1.8%/yr from FY2021.

Growth Quality 74/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$8.9B
Latest YoY
+1.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.9%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+9.3% (7.1 + 2.2)
Revenue +1.3%/yr
FY21 $8.4B
FY22 $9.0B
FY23 $8.4B
FY24 $8.8B
FY25 $8.9B
Net income −1.8%/yr
FY21 $740M
FY22 $757M
FY23 $503M
FY24 $705M
FY25 $688M
Character of growth · EPS growth decomposed (2014-2025) +11.3 % p.a.
Revenue per share +5.7 %

of which total revenue +3.9 % · buybacks/dilution +1.7 %

EBIT margin +3.4 %
Tax rate +1.0 %
Residual (interest, one-offs) +0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

AVY screens 53% overvalued. Compare with Smurfit Westrock Plc, →

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Cite: Fair Value Calculator (2026). "Avery Dennison Corp Fair Value". https://www.fairvalue-calculator.com/stock/AVY

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Packaging & Containers · 270 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside −35% · Below median
Return on equity (TTM) 31% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 2.2% · Below median
Debt / equity 1.43× · Higher than 75% of peers

Valuation Multiples vs Packaging & Containers median · lower = cheaper

P/E (TTM) 19.5× · Pricier than median
P/B 5.36× · Pricier than 75% of peers
P/S (TTM) 1.34× · Pricier than median
P/FCF 16.9× · Pricier than 75% of peers
EV/EBITDA 10.4× · Pricier than median
PEG 1.76× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 13
FUTURE35 · sector 2
PAST100 · sector 21
HEALTH28 · sector 93
DIVIDEND43 · sector 44

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Packaging & Containers stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
Smurfit Westrock Plc, SW $49.25 $22.66 −54%
Packaging Corporation PKG $233.94 $122.63 −48%
International Paper Company IP $36.46 $21.44 −41%
Amcor plc AMCR $46.52 $18.79 −60%
Ball Corporation BALL $61.67 $36.57 −41%
Crown Holdings CCK $119.08 $118.59 +0%
CCL Industries Inc CCLA C$93.99 C$77.64 −17%
Stora Enso Oyj STEAV €9.74 €11.42 +17%
SIG Group SIGN CHF 13.66 CHF 8.32 −39%
Sonoco Products Company SON $56.47 $54.67 −3%

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Frequently asked questions

Is Avery Dennison Corp (AVY) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of $113.05 versus a price of $173.03, about −35% upside (overvalued).
What is the fair value of AVY?
Our model-based fair value for Avery Dennison Corp is $113.05 (as of Sep 3, 2026), built from audited fundamentals. The current price: $173.03.
What is the quality score of AVY?
Avery Dennison Corp has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Avery Dennison Corp (AVY)?
Avery Dennison Corp reported trailing-twelve-month revenue of about $9.0B (latest available figure, as of Sep 3, 2026).
What is the net profit margin of AVY?
The net profit margin of Avery Dennison Corp is about 7.7%, meaning it keeps roughly 7.7% of revenue as net income. Based on the latest reported figures.
Does Avery Dennison Corp pay a dividend?
Avery Dennison Corp currently shows a dividend yield of about 2.17% relative to its recent price (as of Sep 3, 2026).
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