PKG (Packaging of America) EBIT: $1,079 Mil (TTM As of Mar. 2026)


PKG Packaging Corp of America PKG
88 GF Score
Price $237.85
GF Value $221.17
Valuation Fairly Valued
! 6 Warning Signs
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What is Packaging of America EBIT?

Packaging of America PKG +2.16% 88 EBIT is $1,079 Mil as of Mar. 2026. GuruFocus rates PKG with a GF Score™ of 88/100 and a GF Value™ of $221.17 (Fairly Valued). The stock has 6 warning signs investors should review.

Packaging of America's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $252 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $1,079 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Packaging of America's annualized ROC % for the quarter that ended in Mar. 2026 was 8.99%. Packaging of America's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 14.27%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Packaging of America's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.31%.


Packaging of America  (NYSE:PKG) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Packaging of America's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1090.4 * ( 1 - 22.25% )/( (9427.9 + 9437.5)/ 2 )
=847.786/9432.7
=8.99 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Packaging of America's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1009.6/( ( (5361.1 + max(1671.8, 0)) + (5373.1 + max(1742.2, 0)) )/ 2 )
=1009.6/( ( 7032.9 + 7115.3 )/ 2 )
=1009.6/7074.1
=14.27 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1255.8 + 1243.2 + 85.799999999999) - (696.8 + 0 + 216.2)
=1671.8

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1335.9 + 1258.4 + 104.4) - (796.7 + 0 + 159.8)
=1742.2

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Packaging of America's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1079/25015.312
=4.31 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Packaging of America EBIT Related Terms


Packaging of America EBIT Historical Data

* Premium members only.

The historical data trend for Packaging of America's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Packaging of America EBIT Chart

Packaging of America Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,261.10 1,435.20 1,067.40 1,105.80 1,106.90

Packaging of America Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 280.30 333.70 324.50 168.40 252.40

PKG vs AMCR, IP, SW: EBIT Comparison

For the Packaging & Containers subindustry, Packaging of America's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Packaging of America EV-to-EBIT vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Packaging of America's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Packaging of America's EV-to-EBIT falls into.


PKG
88GF Score
Packaging Corp of America PKG
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Packaging of America EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,079 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $1,079 Mil mean?
Packaging of America (PKG) has a EBIT of $1,079 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Packaging of America.
Is Packaging of America's EBIT too high?
Packaging of America's current EBIT is $1,079 Mil. Overall, Packaging of America has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Packaging of America's EBIT compare to AMCR and IP?
Packaging of America's EBIT of $1,079 Mil can be compared against companies in the Packaging & Containers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Packaging & Containers company?
A good EBIT depends on the Packaging & Containers industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Packaging of America. Packaging of America's current EBIT is $1,079 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Packaging of America stock overvalued right now?
Based on GuruFocus' analysis, Packaging of America (PKG) is currently considered Fairly Valued. The stock's GF Value™ is $221.17, compared to a current price of $237.85 — trading 7.5% above its estimated fair value. The current EBIT is $1,079 Mil. Packaging of America's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Packaging of America (PKG), the current EBIT is $1,079 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Packaging of America (PKG) Overvalued in 2026?

Based on GuruFocus' analysis, Packaging of America stock appears to be overvalued. The current stock price of $237.85 is trading 7.5% above its estimated GF Value™ of $221.17. GuruFocus considers Packaging of America to be Fairly Valued.

Key valuation signals for PKG:

  • EBIT: $1,079 Mil
  • GF Value™: $221.17 vs. price of $237.85 (7.5% above fair value)
  • GF Score™: 88/100 with 6 warning signs

No single metric tells the full story. See the PKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Packaging of America Business Description

Address 1 North Field Court, Lake Forest, IL, USA, 60045
Packaging Corp. of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 5 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. PCA differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.
88GF Score

Get the complete analysis for PKG

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$237.85
Price
$221.17
GF Value