Valuation Assessment of Avery Dennison Corp AVY
On July 28, 2026, Avery Dennison Corp (AVY) shares rose 3.7% to a current price of $169.13. This price is situated within the 52-week range of $152.42 to $199.54, indicating a recent uptick in sentiment towards the stock.
- GF Valueâ„¢ verdict: $203.25, 16.8% undervalued
- GF Scoreâ„¢: 85/100 (Strong)
- Most notable signal: No insider transactions in the last 3 months
Is AVY Overvalued or Undervalued?
Avery Dennison Corp's current price of $169.13 is significantly below the GF Valueâ„¢ estimate of $203.25, which indicates that the stock is undervalued by approximately 16.8%. The GF Valueâ„¢ is GuruFocus' proprietary intrinsic-value estimate that takes into account historical trading multiples, past business growth, and forecasts for future performance. In this case, the undervaluation presents a potential opportunity for investors looking for stocks with a margin of safety.
The GF Valuation label describes AVY as "Modestly Undervalued," suggesting that while the stock is undervalued, it might not be at an extreme level. Investors might want to approach this stock with an understanding of its volatility, particularly given that it has experienced a year-to-date decline of 6.0% and a marginal decline of 0.8% over the past year. However, the recent upward movement of 3.7% today and 8.6% over the past week signals positive momentum, which could further support the case for its undervaluation.
How Does AVY's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 19.1x | 21.1x |
| Forward P/E | 16.9x | N/A |
Avery Dennison's current P/E ratio of 19.1x is below its 5-year median P/E of 21.1x, indicating that the stock is trading at a discount compared to its historical valuation. This supports the GF Valueâ„¢ assessment that the stock is undervalued. Additionally, the forward P/E of 16.9x suggests a further potential for appreciation if earnings meet or exceed expectations.
What Does AVY's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a composite score that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a robust score of 85/100, Avery Dennison Corp demonstrates strong fundamentals, particularly in profitability and growth.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 8/10 |
| Valuation | 8/10 |
| Momentum | 4/10 |
The strongest aspect of AVY's score is its profitability rank of 9/10, suggesting that the company has a solid capacity to generate profits relative to its peers. However, its financial strength rank of 5/10 indicates room for improvement, suggesting that while the company is fundamentally sound, it may have some liabilities that could affect its stability. The momentum rank of 4/10 also reflects that while recent performance has been positive, the overall trend may not be strong enough to warrant a higher score in this category.
What Are Gurus and Insiders Doing with AVY?
Currently, 6 gurus hold Avery Dennison Corp stock, with 2 adding to their positions and 5 trimming their holdings in recent quarters. This mixed activity indicates a cautious sentiment among institutional investors, which may reflect their views on the company's growth prospects and valuation.
Interestingly, there have been no insider transactions in the last three months, which could suggest that insiders are not currently optimistic about the near-term prospects or simply are not ready to make significant personal investments in the company. This lack of insider buying can sometimes be interpreted as a lack of confidence in the stock's immediate future, although it could also reflect a strategic decision to hold long-term positions.
What This Means for Investors
Considering the analysis, Avery Dennison Corp appears to be undervalued based on the GF Valueâ„¢ estimate, which suggests a potential for price appreciation. The company's stable profitability and strong growth rank contribute to its attractiveness as a dividend stock, while the lack of recent insider buying and moderate financial strength indicate a need for careful consideration. Overall, it presents a mixed but encouraging picture for potential investors.
For more detailed insights and analysis, visit the Avery Dennison Corp AVY stock page.
Frequently Asked Questions
What is AVY's GF Scoreâ„¢?
AVY's GF Scoreâ„¢ is 85/100, indicating a strong overall performance based on several key financial metrics.
Is AVY overvalued or undervalued?
AVY is considered undervalued with a GF Valueâ„¢ of $203.25, suggesting a potential upside from its current price of $169.13.
What is AVY's P/E ratio?
AVY's P/E ratio is 19.1x, which is below its 5-year median of 21.1x, indicating that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
