Published on 18 Dec 2023 on Simply Wall St. via Yahoo Finance
Avery Dennison Corporation's (NYSE:AVY) Earnings Haven't Escaped The Attention Of Investors
Avery Dennison Corporation's (NYSE:AVY) price-to-earnings (or "P/E") ratio of 33x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 16x and even P/E's below 9x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
Recent times haven't been advantageous for Avery Dennison as its earnings have been falling quicker than most other companies. It might be that many expect the dismal earnings performance to recover substantially, which has kept the P/E from collapsing. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
Check out our latest analysis for Avery Dennison