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Avery Dennison Corporation (AVY) Fair Value & Analysis

Consumer Cyclical · US · Market cap $12.0B

AD Avery Dennison Corporation logo Avery Dennison Corporation AVY · US
Price$173.99
Fair Value$115.28
Upside-33.7%
Quality62/100
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Healthy Growth
Thin margins · 7.7% net margin
Moderate debt · generates free cash flow
2.36% dividend yield
Mixed vs. peers (8/15)
Moderate moat 64/100
Evidence: High Range $63.35 – $178.60 Share as image

Fair value as of: Jul 16, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from $114.75 to $115.28 (+0.5%) since Jul 14, 2026. Share price +5.9% over the past month.

A solid business, but screening 34% overvalued on our models.

What matters now

  • The model range is unusually wide ($63.35 to $178.60). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$220.35 $142.37 Fair Value $115.28 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $142.37 – $220.35 · fair‑value band $63.35 – $178.60 · the $173.99 price screens above the $115.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Avery Dennison Corporation (AVY) currently trades at $173.99, while our model-based Fair Value estimate is $115.28, implying the stock looks roughly 33.7% overvalued today. We read business quality at 62/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Avery Dennison Corporation 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 Jul 16, 2026

Our scenario range runs from $63.35 (bear case) to $178.60 (bull case); at $173.99, the current price sits within 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 15% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -11% fair-value upside, at -34%, AVY screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $62.18 $101.83 $155.64 80
Residual Income $59.20 $78.85 $471.44 76
Rev-Margin DCF $74.68 $138.34 $205.64 74
All 25 models by family
DCF Models
FCF DCF $59.15 $101.51 $161.40 38
Owner Earnings $60.94 $104.08 $165.07 31
5Y Revenue Exit $74.68 $137.51 $214.86 39
5Y EBITDA Exit $89.28 $163.30 $245.66 41
5Y P/E Exit $71.46 $131.83 $191.50 38
10Y Revenue Exit $64.19 $119.08 $186.77 36
10Y EBITDA Exit $77.03 $136.45 $209.08 37
10Y P/E Exit $65.93 $115.25 $169.85 35
Earnings-Based
Graham-Dodd $61.16 $137.55 $175.94 54
PEG = 1.0 $22.48 $32.11 $41.74 46
EPV $68.61 $86.60 $102.34 59
Dividend Discount
Gordon GGM $34.62 $56.35 $81.20 70
DDM Multi-Stage $34.62 $50.53 $68.32 61
Multiples
P/E Multiple $134.92 $179.89 $224.86 63
P/S Multiple $114.68 $152.91 $191.14 58
P/B Multiple $65.95 $87.94 $109.92 55
EV/EBIT $155.52 $220.46 $285.40 53
EV/EBITDA $127.71 $183.38 $239.05 54
EV/Revenue $92.02 $148.30 $204.58 43
Asset-Based
NCAV (Graham) $14.66 $19.64 $29.31 50
Growth DCF
Growth DCF $62.18 $101.83 $155.64 80
Rev-Margin DCF $74.68 $138.34 $205.64 74
Economic Profit
Residual Income $59.20 $78.85 $471.44 76
ROIC Compounder $72.51 $97.74 $125.30 72
Growth Earnings
Growth-Adj P/E $101.18 $144.55 $187.91 68

Widest divergence: Multiples ($152.91) versus Asset-Based ($19.64). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $9.0B
Revenue growth (YoY) +7.0%
Net margin 7.7%
Return on equity 30.9%
Free cash flow $712M FY2025
P/E ratio 17.3
More key figures
Operating margin 12.6%
EPS (TTM) $8.87
Dividend yield 2.4%
EPS growth (YoY) +4.3%
Net debt $3.5B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 53

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 43
Price trend over the last 3–12 months (market factor)
52W Momentum 45
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.

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 Corporation 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. growth/yr (3Y)
−0.7%
Avg. growth/yr (5Y)
+4.9%
Avg. growth/yr (40Y)
+5.8%
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

AVY screens 34% overvalued. Compare with Stora Enso Oyj →

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Cite: Fair Value Calculator (2026). "Avery Dennison Corporation 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 62 · Top 25%
Fair Value upside −34% · 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) 2.4% · Above median
Debt / equity 1.43× · Higher than 75% of peers

Valuation Multiples vs Packaging & Containers median · lower = cheaper

P/E (TTM) 17.9× · Cheaper 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

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.

VALUE 0 · sector 8
FUTURE 35 · sector 1
PAST 100 · sector 21
HEALTH 28 · sector 92
DIVIDEND 47 · sector 43

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

Insider activity: 44/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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EPL Limited 500135 ₹222.25 ₹111.65 -50%
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Frequently asked questions

Is Avery Dennison Corporation (AVY) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $115.28 versus a price of $173.99, about −34% (overvalued).
What is the fair value of AVY?
Our model-based fair value for Avery Dennison Corporation is $115.28 (as of Jul 16, 2026), built from audited fundamentals. The current price is $173.99.
What is the quality score of AVY?
Avery Dennison Corporation has a Quality Score of 62/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Avery Dennison Corporation (AVY)?
Avery Dennison Corporation reported trailing-twelve-month revenue of about $9.0B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of AVY?
The net profit margin of Avery Dennison Corporation is about 7.7%, meaning it keeps roughly 7.7% of revenue as net income. Based on the latest reported figures.
Does Avery Dennison Corporation pay a dividend?
Avery Dennison Corporation currently shows a dividend yield of about 2.41% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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