Avery Dennison Corp (AVY) is slightly overvalued and Sonoco Products Co (SON) is undervalued.
Against our estimates of intrinsic value, SON trades at the wider discount: a margin of safety of +48%, against -6% for AVY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $162.49; the price of $172.09 is 6% above that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 6.5% (average of 3 methods) values the shares at $97.75; the price of $50.69 is 48% below that value, and 85% of that value comes from beyond year five.
Leak Score 86/100 on 3 of 12 signals
| Metric | AVY | SON |
|---|---|---|
| Verdict | Slightly overvalued | Undervalued |
| Price | $172.09 | $50.69 |
| Intrinsic value | $162.49 | $97.75 |
| Margin of safety | -6% | +48% |
| Leak Score | 59/100 (3/12) | 86/100 (3/12) |
| Market cap | $13.0B | $5.0B |
| Revenue growth, 5 years | 4.9% | 7.5% |
| Operating margin | 13.3% | 10.0% |
| Net margin | 7.6% | 8.7% |
| Return on equity | 31.2% | 18.9% |
| Debt to equity | 1.58 | 1.33 |
| P/E | 18.8x | 7.8x |
| Forward P/E | 15.4x | 8.0x |
| P/B | 5.6x | 1.4x |
| Dividend yield | 2.3% | 4.2% |