Using the industry peer median P/E multiple (trailing + forward), Avery Dennison Corporation (AVY) has a fair value of $160.76 based on 4 comparable companies in the Business Equipment & Supplies industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Avery Dennison CorporationAVY | 13,108 | 19.3x | 18.0x |
| Textron Inc.TXT | 15,595 | 17.5x | 13.9x |
| Huntington Ingalls Industries, Inc.HII | 15,227 | 25.2x | 22.5x |
| Allegion plcALLE | 12,606 | 19.7x | 17.9x |
| Masco CorporationMAS | 12,244 | 15.6x | 15.3x |
| Industry Median | 18.6x | 16.6x | |
| (*) Profit after tax | 688 | 729 | |
| Equity Value | 12,794 | 12,092 | |
| (/) Outstanding shares | 77 | 77 | |
| Fair Price | $165 | $156 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.