EV/EBITDA

The current EV/EBITDA of 10.9x means the company’s enterprise value is 10.9 times its earnings before interest, taxes, depreciation, and amortization — a standard measure of valuation that compares the total cost of buying the business to its cash earnings.

This ratio sits well below the sector median of 14.4x, placing Avery Dennison in the 20th percentile of its Industrials peers, indicating the stock is relatively inexpensive compared to most competitors. The metric has been stable over the last eight quarters, though the year-over-year change is not available and the quarter-over-quarter change shows a decline of -2.9%. The combination of a below-median valuation and a stable-to-slightly-declining trend suggests limited downside risk from valuation compression, but also no immediate catalyst for upward re-rating — a balanced risk-opportunity profile. This directly supports the overall NEUTRAL verdict, as the low relative valuation alone does not signal a strong buy or sell without accompanying earnings momentum or other factors.

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