Avery Dennison

Methodology

Avery Dennison's pressure-sensitive materials and labeling solutions serve consumer goods and industrial markets with moderate cyclicality. The company's mix of consumable label materials and durable graphics products provides some earnings stability through economic cycles. This fair value calculation works reasonably for Avery Dennison given steady execution, though raw material cost volatility and retail end-market exposure can create near-term margin pressures.

Methodology

Avery Dennison's PEG ratio typically ranges from 1.5-2.5, reflecting moderate valuations for a specialty materials company with modest growth from market share gains and geographic expansion. The company's transition toward higher-value segments like RFID and sustainable materials justifies modest premiums to commodity packaging. Compare to other specialty packaging and materials companies to assess whether Avery's innovation pipeline and margin expansion warrant current multiples.

Methodology

Avery Dennison's dividend yield (around 1.5-2.5%) provides steady income alongside moderate growth in specialty labeling and materials. The company's consistent cash generation supports both regular dividend increases and share repurchases. PEGY better captures the total return proposition for Avery Dennison as a quality industrial with balanced growth and income characteristics appealing to investors seeking stable materials exposure.