Avery Dennison Corporation (AVY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-15.4%

$157.28

vs $185.83 price

Levered DCF

$110.35

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.64

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.67×	21.59×	32.45×	19.5×	24.25×	23.25×	36.46×	16.09×
P/B	6.28×	6.55×	7.67×	7.27×	9.33×	8.62×	9.18×	7.88×
P/S	1.59×	1.73×	1.95×	1.63×	2.14×	1.86×	1.56×	1.05×
EV / EBITDA	12.68×	13×	17.39×	12.88×	15.99×	14.62×	25.26×	11.66×
Gross margin	28.8%	28.9%	27.2%	26.5%	27.5%	27.6%	26.9%	26.7%
Operating margin	12.5%	12.9%	11.4%	11.9%	12.4%	12.6%	11.6%	11.3%
Net margin	7.8%	8.1%	6.0%	8.4%	8.8%	8.0%	4.3%	6.5%
Current ratio	1.13×	1.08×	1.04×	0.99×	1.07×	1.25×	1.04×	1.15×
Debt / equity	1.66×	1.36×	1.52×	1.53×	1.61×	1.41×	1.61×	2.06×
Interest coverage	8.15×	9.64×	8.02×	12.75×	14.81×	12.5×	10.82×	13.83×
Dividend yield	2.0%	1.8%	1.6%	1.6%	1.2%	1.5%	1.7%	2.3%
Payout ratio	41.9%	39.4%	51.0%	31.6%	29.8%	35.4%	62.5%	37.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	30.7%	30.5%	23.6%	37.3%	38.5%	37.1%	25.2%	48.9%
Return on invested capital	12.3%	13.6%	11.3%	14.1%	13.6%	15.6%	22.3%	20.3%
Return on assets	7.8%	8.4%	6.1%	9.5%	9.3%	9.1%	5.5%	9.0%
Free cash flow yield	5.1%	4.8%	3.3%	4.5%	4.3%	4.1%	4.4%	2.7%
Earnings yield	4.9%	4.7%	3.1%	5.1%	4.1%	4.3%	2.7%	6.2%
Enterprise value	$17.6B	$18B	$19.3B	$17.7B	$20.9B	$14.8B	$12.7B	$9.3B
Net debt / EBITDA	2.54×	2.04×	2.72×	2.14×	2.25×	1.84×	3.34×	2.18×
Cash conversion cycle (days)	45	40	40	37	38	41	39	34