艾利丹尼森

Avery Dennison Corp receives a 5-star quantitative star rating, indicating our belief that this share class offers a compelling opportunity for investors. The stock currently trades at a 10% discount to our quantitative fair value estimate of $187.31 per share, which is reinforced by this estimate's low uncertainty rating.

The firm's profitability bolsters our estimated fair value. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. For example, the firm's earnings yield of 6.0% ranks in the top 40% compared with peers globally. This suggests that it is generating substantial earnings relative to its share price, which contributes to our view that shares are cheap.

Alternatively, the company's valuation metrics are potentially concerning. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's book value yield of 18.0%, for example, falls in the bottom 20% compared with global peers. The market value of this company's shares looks expensive relative to the book (accounting) value of equity, which, despite our favorable price/fair value ratio, is a negative attribute.

The company's narrow quantitative moat rating indicates it could outearn its cost of capital and maintain robust margins for 10 years or longer. In addition, the company's moderate financial health score is decent and doesn't seriously concern us with regard to financial distress.