What is Packaging Corporation of America (PKG)'s PEG ratio?

Packaging Corporation of America (PKG) has a PEG ratio of 2.71 (Potentially Overvalued), based on a PE ratio of 32.9 and expected EPS growth of 12.1% (5-Year EPS CAGR).

Is PKG undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 2.71, Packaging Corporation of America (PKG) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/PKG.

Packaging Corporation of America (PKG) PEG Ratio

Potentially Overvalued

PE ratio relative to earnings growth — is the valuation justified?

2.71

PEG Ratio

2.71

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$252.97

TTM EPS

$7.70

P/E Ratio

32.85

Growth Rate

12.1%

5-Year EPS CAGR

Sector

Consumer Cyclical

Packaging & Containers

Calculated

8/18/2026

9:45:50 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

1.91

25th Percentile

0.62

75th Percentile

4.40

PKG PEG (2.71) vs Industry Median (1.91): 42% premium

Symbol	Company	PEG	P/E	Growth	vs PKG
EG	Everest Group, Ltd.	0.32	7.8	24.2%	-88%
SON	Sonoco Products Company	0.62	8.7	14.1%	-77%
AVY	Avery Dennison Corporation	3.21	18.3	5.7%	+18%
SEE	Sealed Air Corporation	4.40	8.7	2.0%	+62%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Packaging Corporation of America (PKG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on PKG

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Packaging Corporation of America (PKG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on PKG

Compare with peers

Explore