5 models fit Avery Dennison Corporation Common Stock and they disagree: 0 of 5 land within 15% of the average.
Two or more of our models back this value.
Large premium(i)Silver66
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionAvery Dennison Corporation Common Stock (AVY)
Fair value (5 models)
$119
ACCE price target
$186
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 14:06 CEST; previously $121 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 14:06 CEST.
Price used: $182 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
52.8% above
-34.5% to fair value
ACCE score
64
out of 100
Analysts
82% buy
11 covering
P/E
19.6x
forward 15.3x
1-year return
-2.4%
Dividend yield
2.13%
Avery Dennison Corporation Common Stock in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Avery Dennison makes pressure-sensitive label materials, RFID inlays and tags, and packaging graphics, selling mostly to apparel, retail, and consumer goods brands that need labels printed and tracked at high volume. Its edge is in the qualification cycle: once a label stock is approved on a brand's packaging line or retail supply chain, switching suppliers is slow and costly, which supports the 29.0% gross margin and a 31.2% ROE. Revenue growth of 10.9% is the number to pressure-test, since it likely reflects RFID adoption in apparel and retail rather than the base label business alone. At 15.7 times forward earnings against 19.2 times trailing, the market is pricing in earnings growth the company has yet to report, and at a 13.4 billion dollar market cap with no index membership, the name sits outside many large-cap screens, which may explain its valuation. The 13.6% operating margin leaves room for execution to disappoint, so the next step is checking whether RFID volume growth is holding up in the reported segment numbers.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Leverage elevated
Debt/Equity of 1.66 is high for a packaging business with a 1.4 P/S, so balance sheet flexibility is limited if demand softens.
moderate
Insider selling without buying
Insiders sold $7.94M across the last 10 disclosed transactions and bought $0.00M, a one-sided pattern worth weighing alongside the valuation.
moderate
Stock trades well above model fair value
At $175.31 the stock trades 52.8% above the model fair value of $119.01, so the market is already pricing in a lot of the growth.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 10.9% year over year, well ahead of the 4.9% average annual pace over five years.
Free cash flow over the last twelve months reached $712M, and the diluted share count fell 4.1% last fiscal year.
Why it could disappoint
The stock trades 52.8% above the model fair value of $119.01, and all five valuation models in the consensus sit in that range.
Debt to equity stands at 1.66 and the net margin is only 7.6%, leaving little cushion if demand softens.
The forward P/E of 15.3x is below the sector median of 17.6x, but the 5.4% free cash flow yield offers a thinner margin of safety than the headline return on equity of 31.2% suggests.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where AVY's valuation models land
Price
$181.83
Model fair value
$119
Model range
$76.92 to $183
Fair value $119
Price $182
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores