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Relatively High EV/EBITDA Ratio Detected in Shares of Sealed Air in the Paper Packaging Industry (SEE, BMS, AVY, SON, GPK)

By Shiri Gupta

Below are the three companies in the Paper Packaging industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Sealed Air ranks highest with a an EV/EBITDA ratio of 14.97. Bemis is next with a an EV/EBITDA ratio of 10.99. Avery Dennison ranks third highest with a an EV/EBITDA ratio of 10.22.

Sonoco Products follows with a an EV/EBITDA ratio of 10.10, and Graphic Packaging Holding rounds out the top five with a an EV/EBITDA ratio of 8.88.

SmarTrend recommended that subscribers consider buying shares of Sonoco Products on February 12th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $41.03. Since that recommendation, shares of Sonoco Products have risen 24.8%. We continue to monitor Sonoco Products for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio sealed air bemis avery dennison sonoco products graphic packaging holding