QualityDipStocks / Consumer Discretionary · Containers/Packaging
Avery Dennison AVY
Outside our quality screen, so we don’t track its dips. It’s 8% below its 52-week high.
Outside our quality screen, trading below our fair value estimate.
- Fair value est.
- $220.50+21%
- Market Value
- forming
- Off 52-wk high
- −8%
- Risk vs market
- Lowbeta 0.46
5 bullish · 4 bearish See why
Key levels
Every level vs today’s $182.22
- 52-wk lowlowest close, 1 year$153.01−16.0%
- PriceFri Oct 30 close$182.22you are here
- 52-wk highhighest close, 1 year$197.45+8.4%
- Fair value est.base case$220.50+21.0%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, AVY’s free cash flow would need to stay flat for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much AVY moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 1.8× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.46
- Volatility
- 23% vs 13% SPY
- Correlation SPY
- 0.25
- Correlation QQQ
- 0.05
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $220.50, 21% above the price.
ValuationFree-cash-flow yield of 7.6% (price / FCF 13.1×): $1.1B of free cash in the last 12 months.
Cash returnsFree cash flow grew 67% over the last 12 months vs the 12 months before.
ProfitabilityReturn on equity of 31% over the last 12 months, up 7 points in two years.
Cash returnsShare count down 2.4% in a year: $410M of buybacks over 12 months.
Top bearish points 4 of 5
GrowthSales grew only −0.7% a year from FY2022 to FY2025.
Balance sheetDebt / equity of 1.4×, above the 0.9× median for the 119 Consumer Discretionary companies we cover.
ProfitabilityGross margin of 29%, below the 39% median for the 120 Consumer Discretionary companies we cover.
GrowthSales grew 5.8% over the last 12 months, below the 7.0% median for the 175 Consumer Discretionary companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Avery Dennison in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Containers/Packaging
All fundamentals
P/E 19.7 · FCF yield 7.6% · ROE 31%
Valuation
- P/E
- 19.7×Consumer Discretionary median 20.9×
- Price / FCF
- 13.1×
- FCF yield
- 7.6%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 1.51×
- Price / book
- 5.99×
- Market cap
- $13.9Bprice × diluted shares
- Enterprise value
- $16.9B
Growth
- Revenue, 12 months
- $9.2B
- Sales growth, 12 months
- +5.8%vs the 12 months before
- Sales growth, 3 yrs
- −0.7%/yrfrom FY2022
- Diluted EPS, 12 months
- $9.14
- EPS growth, last FY
- +0.7%
- Net income, 12 months
- $705M
- Net income growth
- −1%12 months vs before
Profitability
- Gross margin
- 29.0%
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 7.6%
- FCF margin
- 11.5%
- Return on equity
- 31%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $227M
- Total debt
- $3.2B
- Net cash
- −$3.0B
- Debt / equity
- 1.37×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $1.1B
- FCF growth, 12 months
- +67%
- Dividend yield
- 2.11%$294M paid
- Payout ratio
- 42%
- Buybacks, 12 months
- $410M2.9% of market cap
- Share count, 1 year
- −2.4%diluted shares vs a year ago
- Stock-based comp
- $25M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Avery Dennison’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $220.50 · FCF value $307.00
Assumes 3.0% growth for 5 years (revenue grew -0.7% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $13.91 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Aug 4, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 64 · 5 days +0.2%
The business
FCF $0.9B · Sales +5%
- Free cash flow, 12 months$0.9B
- Free-cash-flow yield6.7%
- Free-cash-flow margin10%
- Gross margin29%
- Operating margin12%
- Return on invested capital16%
- Return on equity31%
- Sales growth (latest quarter vs year-ago quarter)+5%
- Net debt / EBITDA2.2×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
AVY is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.