AVY PEG Ratio Analysis

The PEG ratio divides a stock's price-to-earnings multiple by its expected earnings growth rate, so a 2.33x value means Avery Dennison is priced at more than twice its forecast growth — expensive for that growth.

Its sector peers trade at a median 0.91x, and AVY sits at the 88th percentile, indicating it is pricier than nearly nine in ten industrials. The metric is decreasing over the last eight quarters, with the current 2.33x down 86.3% from the prior quarter's 16.97x, though the year-over-year change is not available. This sharp decline — from 17.44x to 16.97x to 2.33x — implies either earnings growth expectations have jumped or the valuation has compressed, both reducing the previous overvaluation. Still, the level remains well above the sector benchmark, leaving valuation risk intact. The combination of a high but rapidly falling PEG supports the overall NEUTRAL verdict: the improving trend offsets the rich absolute level, but the stock is not yet a clear bargain.

Frequently Asked Questions

Closest Sector Peers