Amcor shares have gained 11.7% over the past month, yet a Discounted Cash Flow model estimates the stock is undervalued by 42.7% with an intrinsic value of about $75.63 per share, while earnings-based multiples suggest it is overvalued. The DCF model starts from trailing twelve-month free cash flow of roughly $815.7 million and assumes growth, supported by recent moves such as the sale of ESE World and new partnerships in sustainable and industrial packaging. However, Amcor trades at about 29.5 times earnings, close to the peer average of 29.9 times but well above the wider packaging industry average of roughly 15.0 times, and above Simply Wall St's fair P/E estimate of 24.2 times. The valuation split hinges on whether investors emphasize long-term cash generation or current peer multiples and sentiment, with execution on portfolio changes and projects key to turning the discount into an opportunity.
Amcor PLCDCF model estimates stock is undervalued by 42.7% with intrinsic value of $75.63 per share, suggesting upside.