Latest Ratios: P/E Ratio 18.7x · EV/EBITDA 12.0x · ROE 30.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.6B | $14.1B | $15.2B | $16.4B | $14.9B | $18.1B | $13.0B | $11.2B | $7.9B | $10.3B | $6.4B |
| Enterprise Value | $16.2B | $17.6B | $18.0B | $19.4B | $17.8B | $21.1B | $14.9B | $12.9B | $9.6B | $11.7B | $7.5B |
| P/E Ratio → | 18.72 | 20.72 | 21.59 | 32.61 | 19.65 | 24.53 | 23.47 | 36.87 | 16.82 | 36.70 | 19.84 |
| P/S Ratio | 1.43 | 1.59 | 1.74 | 1.96 | 1.65 | 2.16 | 1.87 | 1.58 | 1.10 | 1.56 | 1.05 |
| P/B Ratio | 5.67 | 6.28 | 6.58 | 7.70 | 7.32 | 9.43 | 8.70 | 9.29 | 8.24 | 9.89 | 6.88 |
| P/FCF | 17.74 | 19.76 | 20.84 | 30.31 | 22.46 | 23.43 | 24.49 | 22.86 | 39.10 | 24.41 | 16.82 |
| P/OCF | 14.34 | 15.97 | 16.20 | 19.85 | 15.48 | 17.34 | 17.36 | 14.99 | 17.19 | 15.92 | 10.88 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.99 | 2.06 | 2.32 | 1.97 | 2.51 | 2.14 | 1.82 | 1.34 | 1.77 | 1.23 |
| EV / EBITDA | 12.01 | 13.08 | 12.53 | 15.50 | 13.07 | 16.43 | 13.80 | 12.89 | 9.70 | 12.60 | 9.58 |
| EV / EBIT | 14.65 | 16.60 | 16.85 | 23.87 | 16.44 | 19.84 | 18.47 | 39.57 | 15.66 | 17.99 | 13.91 |
| EV / FCF | — | 24.72 | 24.71 | 35.91 | 26.89 | 27.22 | 27.99 | 26.31 | 47.71 | 27.61 | 19.72 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.8% | 28.8% | 28.9% | 27.2% | 26.5% | 27.5% | 27.6% | 26.9% | 26.7% | 27.4% | 27.9% |
| Operating Margin | 12.5% | 12.5% | 12.9% | 11.4% | 11.9% | 12.4% | 12.6% | 11.6% | 11.3% | 11.4% | 9.8% |
| Net Profit Margin | 7.8% | 7.8% | 8.1% | 6.0% | 8.4% | 8.8% | 8.0% | 4.3% | 6.5% | 4.3% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.2% | 30.2% | 31.8% | 24.2% | 38.3% | 43.2% | 41.1% | 28.1% | 46.7% | 28.6% | 33.9% |
| ROA | 8.0% | 8.0% | 8.5% | 6.2% | 9.5% | 10.5% | 9.6% | 5.7% | 9.1% | 5.9% | 7.5% |
| ROIC | 15.2% | 15.2% | 16.4% | 14.1% | 16.4% | 18.9% | 21.0% | 22.0% | 23.8% | 25.4% | 23.1% |
| ROCE | 18.9% | 18.9% | 20.4% | 17.9% | 20.3% | 21.7% | 23.6% | 25.5% | 25.5% | 27.0% | 23.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.66 | 1.66 | 1.36 | 1.52 | 1.53 | 1.61 | 1.41 | 1.61 | 2.06 | 1.51 | 1.40 |
| Debt / EBITDA | 2.77 | 2.77 | 2.19 | 2.59 | 2.28 | 2.42 | 1.96 | 1.94 | 1.99 | 1.70 | 1.66 |
| Net Debt / Equity | — | 1.57 | 1.22 | 1.42 | 1.44 | 1.53 | 1.24 | 1.40 | 1.82 | 1.30 | 1.19 |
| Net Debt / EBITDA | 2.62 | 2.62 | 1.96 | 2.42 | 2.15 | 2.29 | 1.73 | 1.69 | 1.75 | 1.46 | 1.41 |
| Debt / FCF | — | 4.96 | 3.87 | 5.60 | 4.43 | 3.80 | 3.50 | 3.45 | 8.62 | 3.20 | 2.90 |
| Interest Coverage | 7.83 | 7.83 | 9.15 | 6.84 | 12.88 | 15.14 | 11.53 | 4.29 | 10.48 | 10.33 | 8.96 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.13 | 1.13 | 1.08 | 1.04 | 0.99 | 1.07 | 1.25 | 1.04 | 1.15 | 1.13 | 0.95 |
| Quick Ratio | 0.76 | 0.76 | 0.73 | 0.69 | 0.63 | 0.72 | 0.88 | 0.74 | 0.83 | 0.83 | 0.69 |
| Cash Ratio | 0.08 | 0.08 | 0.13 | 0.08 | 0.06 | 0.06 | 0.13 | 0.11 | 0.12 | 0.11 | 0.10 |
| Asset Turnover | — | 1.01 | 1.04 | 1.02 | 1.14 | 1.05 | 1.14 | 1.29 | 1.38 | 1.29 | 1.38 |
| Inventory Turnover | 6.47 | 6.47 | 6.37 | 6.61 | 6.58 | 6.72 | 7.04 | 7.79 | 8.06 | 7.88 | 8.45 |
| Days Sales Outstanding | — | 61.99 | 61.12 | 61.74 | 55.50 | 61.84 | 64.67 | 62.58 | 60.66 | 65.14 | 60.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.0% | 1.8% | 1.6% | 1.6% | 1.2% | 1.5% | 1.7% | 2.2% | 1.5% | 2.2% |
| Payout Ratio | 41.9% | 41.9% | 39.4% | 51.0% | 31.6% | 29.8% | 35.4% | 62.5% | 37.4% | 55.2% | 44.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 4.8% | 4.6% | 3.1% | 5.1% | 4.1% | 4.3% | 2.7% | 5.9% | 2.7% | 5.0% |
| FCF Yield | 5.6% | 5.1% | 4.8% | 3.3% | 4.5% | 4.3% | 4.1% | 4.4% | 2.6% | 4.1% | 5.9% |
| Buyback Yield | 4.5% | 4.1% | 1.7% | 0.8% | 2.6% | 1.0% | 0.8% | 2.1% | 5.0% | 1.3% | 4.1% |
| Total Shareholder Yield | 6.8% | 6.1% | 3.5% | 2.4% | 4.2% | 2.2% | 2.3% | 3.8% | 7.2% | 2.8% | 6.4% |
| Shares Outstanding | — | $77M | $81M | $81M | $82M | $84M | $84M | $85M | $89M | $90M | $91M |
Commodity-driven margin volatility
According to current market data, AVY trades at a P/E of 18.88, a multiple that suggests investors are pricing in a successful pivot toward higher-margin digital identification, despite the company's historical roots in the lower-growth, commodity-sensitive label and packaging materials sector.
The forward P/E of 16.53 implies a modest expectation for earnings growth, which appears consistent with the company's recent 1.14% revenue growth trend. Investors should monitor whether the premium over traditional packaging peers is justified by the scalability of the atma.io platform or if the valuation remains tethered to cyclical industrial demand.
Based on reported financial statements, AVY's ROIC has remained stagnant, hovering between 3.5% and 4.1% over the last ten quarters, which indicates that the company is struggling to generate meaningful economic value above its cost of capital despite its strategic focus on RFID integration.
The persistent gap between ROIC and historical industrial benchmarks suggests that the company's significant goodwill balance may be diluting the efficiency of its invested capital. This trend warrants further investigation into whether recent acquisitions are failing to meet internal hurdle rates or if the core business requires excessive capital intensity to maintain its competitive moat.
As reported in recent quarterly filings, AVY's cash conversion cycle has fluctuated between 41 and 51 days, reflecting the inherent difficulty in managing inventory and receivables across a complex, global supply chain that is highly sensitive to retail inventory cycles.
The variability in the CCC, driven largely by swings in DIO and DPO, suggests that the company lacks the pricing power to dictate terms to its suppliers or customers consistently. This inefficiency may be a structural byproduct of its high-volume, low-margin label business, which requires significant working capital to support.
Based on the provided data, the debt-to-equity ratio has trended upward to 1.65 as of 2026Q1, a figure that appears elevated compared to historical norms and suggests that the company's balance sheet is becoming increasingly sensitive to interest rate volatility and refinancing requirements.
The interest coverage ratio, which has dipped toward 6.59x in recent periods, indicates that the margin of safety for debt service is narrowing. Investors should be cautious, as the current leverage profile may limit management's flexibility to pursue further inorganic growth or maintain aggressive shareholder return programs.
The most commonly misapplied metric for AVY is the standard P/E ratio, which obscures the company's transition from a hardware-centric manufacturer to a digital infrastructure provider by failing to account for the non-cash impact of amortization from past acquisitions and stock-based compensation.
Analysts should instead focus on EV/EBITDA or adjusted free cash flow metrics to better capture the underlying cash-generating power of the business. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation, as it ignores the significant capital expenditures required to maintain its RFID manufacturing footprint.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AVY stock.
Avery Dennison Corporation's current P/E ratio is 18.7x. The historical average is 22.2x. This places it at the 24th percentile of its historical range.
Avery Dennison Corporation's current EV/EBITDA is 12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
Avery Dennison Corporation's return on equity (ROE) is 30.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 23.4%.
Based on historical data, Avery Dennison Corporation is trading at a P/E of 18.7x. This is at the 24th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Avery Dennison Corporation's current dividend yield is 2.27% with a payout ratio of 41.9%.
Avery Dennison Corporation has 28.8% gross margin and 12.5% operating margin. Operating margin between 10-20% is typical for established companies.
Avery Dennison Corporation's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.