Avery Dennison Corporation

AI-generated fair value estimate for this company.

Method: Two-stage 10-year unlevered FCF DCF: $780M normalized annual FCF base (blend of FY2023-2025 FCF of $560.7M/$730M/$712.4M and stronger TTM FCF of $1,063M); 5% FCF growth in years 1-5, 4% in years 6-10; 8% discount rate (WACC); 2.5% terminal growth; sum of discounted FCFs (~$6,616M) plus discounted terminal value (~$10,455M) gives enterprise value of ~$17,071M; less $3.41B net debt = ~$13,661M equity value; divided by 75.79M shares outstanding.

Reasoning: Avery Dennison is a mature, profitable, large-cap industrial materials manufacturer (labeling and packaging) with a long history of stable, real free cash flow and moderate leverage, making a standard enterprise DCF the most defensible method; growth assumptions align with analyst consensus of ~3-5.5% near-term revenue growth and management's FY2026 guidance of 5-6% reported sales growth, tapering toward a GDP-plus terminal rate.