Ball Corporation

Methodology

Ball Corporation's aluminum beverage can manufacturing provides relatively stable earnings from consumer beverage demand, though commodity aluminum costs and customer concentration create volatility. The company's long-term contracts with major beverage producers provide revenue visibility, but pass-through pricing mechanisms affect margin timing. This fair value calculation works reasonably for Ball given the essential nature of beverage packaging, though aluminum price swings can temporarily distort results.

Methodology

Ball's PEG ratio typically ranges from 1.5-2.5, reflecting moderate valuations for a packaging supplier with limited organic growth tied to beverage consumption trends. The company's expansion into new markets and lightweight can innovation provide modest growth drivers beyond volume. Compare to other metal and plastic packaging suppliers to assess whether Ball's market leadership in aluminum cans and sustainability positioning justify current multiples.

Methodology

Ball Corporation's dividend yield (around 1.0-1.5%) is modest as the company prioritizes debt reduction following the Rexam acquisition and capacity investments. The packaging manufacturer balances capital allocation between dividends, debt paydown, and facility expansion. PEGY adds some context for Ball investors, though for a capital-intensive packaging company, free cash flow generation and leverage trends matter more than dividend-adjusted earnings multiples.