Value Investing with Sven Carlin, Ph.D. on $AVY (Nov 3, 2026)
AVY gained brilliantly over the past decade but not on great results — net income only doubled in twenty years, with multiple expansion and buybacks doing the work. With a P/E of 20, 5% growth and dividends giving a 6-7% expected return, below the above-10% the speaker requires, the P/E should be 50% lower, at a 10 maximum.
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Avery Denison , the stock has performed brilliantly over the past decade. Not much has happened since then. The sticker company that is making its mark on the world we live in.
The price-to-earnings ratio is 20. Yes, they expect 5% growth. Add in dividends, and that brings the target to 6-7 percent, which is the currently expected return for these industrial companies.
And again, for me, this is not enough. The percentage must be higher than 10% for these to be considered valuable investments. As you can see here , the stock has flourished, but not based on great results.
Net income has doubled in the last twenty years, which isn't much. So , it was just an expansion of the evaluation, and things like that . Share buyback. A price-to-earnings ratio of 10 is the maximum for this . It should be 50% less.