Latest Ratios: P/E Ratio 28.1x · EV/EBITDA 13.3x · ROE 17.1%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $21.5B | $18.5B | $20.1B | $14.6B | $11.9B | $12.9B | $13.0B | $10.5B | $7.8B | $11.3B | $7.9B |
| Enterprise Value | $25.3B | $22.3B | $22.2B | $17.1B | $14.3B | $15.0B | $14.8B | $12.6B | $10.0B | $13.7B | $10.4B |
| P/E Ratio → | 28.09 | 24.04 | 25.21 | 19.21 | 11.61 | 15.42 | 28.44 | 15.24 | 10.62 | 17.05 | 17.86 |
| P/S Ratio | 2.39 | 2.06 | 2.40 | 1.87 | 1.40 | 1.66 | 1.96 | 1.51 | 1.12 | 1.75 | 1.38 |
| P/B Ratio | 4.70 | 4.02 | 4.58 | 3.65 | 3.23 | 3.57 | 4.01 | 3.43 | 2.93 | 5.18 | 4.52 |
| P/FCF | 29.47 | 25.36 | 38.64 | 17.25 | 17.68 | 26.31 | 21.29 | 13.04 | 12.47 | 22.01 | 15.08 |
| P/OCF | 13.79 | 11.86 | 16.91 | 11.09 | 7.93 | 11.76 | 12.61 | 8.73 | 6.64 | 13.19 | 9.92 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.48 | 2.65 | 2.19 | 1.69 | 1.94 | 2.22 | 1.81 | 1.42 | 2.13 | 1.80 |
| EV / EBITDA | 13.26 | 11.69 | 13.67 | 10.74 | 7.63 | 8.81 | 11.81 | 8.74 | 6.75 | 10.37 | 9.09 |
| EV / EBIT | 20.16 | 20.16 | 20.11 | 16.03 | 9.98 | 11.88 | 20.36 | 12.04 | 9.36 | 14.74 | 13.25 |
| EV / FCF | — | 30.63 | 42.64 | 20.23 | 21.36 | 30.63 | 24.17 | 15.59 | 15.87 | 26.76 | 19.69 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.0% | 21.0% | 21.3% | 21.8% | 24.7% | 24.2% | 20.8% | 23.6% | 23.5% | 22.8% | 22.1% |
| Operating Margin | 14.0% | 14.0% | 13.1% | 13.8% | 16.8% | 16.6% | 12.6% | 15.1% | 15.2% | 14.5% | 13.6% |
| Net Profit Margin | 8.6% | 8.6% | 9.6% | 9.8% | 12.1% | 10.9% | 6.9% | 10.0% | 10.5% | 10.4% | 7.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.1% | 17.1% | 19.2% | 20.0% | 28.3% | 24.5% | 14.6% | 24.3% | 30.4% | 33.9% | 26.5% |
| ROA | 7.8% | 7.8% | 9.2% | 9.2% | 13.0% | 11.0% | 6.3% | 10.1% | 11.6% | 11.2% | 8.1% |
| ROIC | 12.6% | 12.6% | 12.7% | 12.7% | 18.0% | 17.9% | 12.5% | 15.9% | 17.0% | 15.9% | 14.8% |
| ROCE | 14.2% | 14.2% | 14.4% | 14.8% | 20.2% | 18.9% | 12.8% | 17.0% | 19.0% | 17.7% | 15.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.95 | 0.95 | 0.63 | 0.79 | 0.76 | 0.76 | 0.84 | 0.89 | 0.94 | 1.21 | 1.52 |
| Debt / EBITDA | 2.29 | 2.29 | 1.70 | 1.99 | 1.49 | 1.61 | 2.19 | 1.90 | 1.69 | 2.00 | 2.34 |
| Net Debt / Equity | — | 0.83 | 0.47 | 0.63 | 0.67 | 0.59 | 0.54 | 0.67 | 0.80 | 1.12 | 1.38 |
| Net Debt / EBITDA | 2.01 | 2.01 | 1.28 | 1.59 | 1.32 | 1.24 | 1.41 | 1.43 | 1.45 | 1.84 | 2.13 |
| Debt / FCF | — | 5.26 | 4.00 | 2.99 | 3.69 | 4.32 | 2.88 | 2.54 | 3.41 | 4.74 | 4.61 |
| Interest Coverage | 13.99 | 13.99 | 26.71 | 20.03 | 20.39 | 8.27 | 7.77 | 8.12 | 11.21 | 9.08 | 8.53 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.17 | 3.17 | 3.23 | 2.57 | 2.86 | 3.09 | 3.51 | 3.42 | 3.05 | 2.30 | 2.71 |
| Quick Ratio | 1.94 | 1.94 | 2.10 | 1.77 | 1.75 | 2.07 | 2.51 | 2.33 | 1.90 | 1.38 | 1.56 |
| Cash Ratio | 0.59 | 0.59 | 0.79 | 0.90 | 0.46 | 0.80 | 1.38 | 1.06 | 0.52 | 0.26 | 0.38 |
| Asset Turnover | — | 0.82 | 0.95 | 0.90 | 1.06 | 0.99 | 0.90 | 0.96 | 1.07 | 1.04 | 1.00 |
| Inventory Turnover | 5.71 | 5.71 | 5.87 | 6.02 | 6.54 | 6.49 | 6.69 | 6.70 | 6.75 | 6.52 | 6.22 |
| Days Sales Outstanding | — | 52.13 | 50.25 | 48.53 | 45.96 | 50.92 | 45.91 | 45.71 | 47.80 | 50.98 | 44.41 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.1% | 2.4% | 2.2% | 3.1% | 3.5% | 3.0% | 2.3% | 2.8% | 3.4% | 2.1% | 2.7% |
| Payout Ratio | 58.5% | 58.5% | 55.7% | 58.7% | 40.8% | 45.2% | 65.0% | 42.9% | 36.3% | 35.5% | 48.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 4.2% | 4.0% | 5.2% | 8.6% | 6.5% | 3.5% | 6.6% | 9.4% | 5.9% | 5.6% |
| FCF Yield | 3.4% | 3.9% | 2.6% | 5.8% | 5.7% | 3.8% | 4.7% | 7.7% | 8.0% | 4.5% | 6.6% |
| Buyback Yield | 0.7% | 0.8% | 0.1% | 0.4% | 4.5% | 1.6% | 0.1% | 0.1% | 0.1% | 0.1% | 1.4% |
| Total Shareholder Yield | 2.8% | 3.3% | 2.4% | 3.5% | 8.1% | 4.6% | 2.4% | 2.9% | 3.5% | 2.2% | 4.1% |
| Shares Outstanding | — | $90M | $90M | $90M | $93M | $95M | $94M | $94M | $94M | $94M | $94M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying PKG stock.
Packaging Corporation of America's current P/E ratio is 28.1x. The historical average is 19.8x. This places it at the 84th percentile of its historical range.
Packaging Corporation of America's current EV/EBITDA is 13.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
Packaging Corporation of America's return on equity (ROE) is 17.1%. The historical average is 19.8%.
Based on historical data, Packaging Corporation of America is trading at a P/E of 28.1x. This is at the 84th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Packaging Corporation of America's current dividend yield is 2.08% with a payout ratio of 58.5%.
Packaging Corporation of America has 21.0% gross margin and 14.0% operating margin. Operating margin between 10-20% is typical for established companies.
Packaging Corporation of America's Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Input cost volatility
Metrics are mathematically derived from official filings.
Margin Compression Amid Volume Growth
Gross margin fell to 19.1% in 2026Q1 from 21.2% a year earlier, as reported in SEC filings, suggesting input cost pressures are eroding pricing power despite robust demand.
The sequential decline in gross margin from 21.8% in 2025Q3 to 19.1% in 2026Q1, based on reported figures, indicates that cost inflation in fiber and energy is outpacing price realization. Operating margin followed a similar path, dropping to 11.5% from 14.0% over the same period, which may reflect reduced operating leverage as SG&A costs grew faster than gross profit. Investors should monitor whether the company can pass through cost increases in the coming quarters, as the current trend suggests a potential structural squeeze if input costs remain elevated.
Return on Capital Decelerating
ROIC declined to 2.4% in 2026Q1 from 3.8% in 2025Q2, as per financial statements, indicating that the recent acquisition has yet to generate returns commensurate with the expanded capital base.
The drop in ROIC from a peak of 3.8% in 2025Q2 to 2.4% in 2026Q1, based on reported data, suggests that the $1.8B acquisition has temporarily depressed capital efficiency. ROE also weakened, falling to 3.7% from 5.3% over the same period, which may indicate that the integration of acquired assets is still in its early stages. While the company's historical returns have been modest, the current levels are below the cost of capital, implying that management must execute on synergies to restore value creation.
Working Capital Efficiency Stable
Cash conversion cycle widened to 88 days in 2026Q1 from 85 days a year earlier, as reported in financial statements, reflecting a slight increase in inventory days that may signal demand softening.
The CCC has remained in a narrow band of 79-90 days over the past ten quarters, based on reported figures, indicating that working capital management is consistent. However, DIO rose to 59 days in 2026Q1 from 57 days in 2024Q1, which could suggest that inventory is building ahead of demand or that the company is stocking up on raw materials. Asset turnover has been stable at 0.22-0.25, reflecting the capital-intensive nature of the business, but the recent acquisition has not yet improved efficiency.
Leverage Rises Post-Acquisition
Debt-to-equity climbed to 0.95 in 2026Q1 from 0.63 in 2024Q4, as per balance sheet data, reflecting the $1.8B acquisition, yet interest coverage remains comfortable at 7.74x.
The increase in leverage is directly attributable to the acquisition, which added $1.6B in debt, based on reported figures. Despite the higher debt load, interest coverage of 7.74x in 2026Q1, though down from 25.92x in 2024Q4, still suggests that debt service is manageable. However, the D/EBITDA ratio of 8.77x is elevated relative to the company's historical range of 5.93-9.75x, indicating that the balance sheet has become more stretched, and investors should monitor the company's ability to deleverage through free cash flow.
Liquidity Remains Robust
Current ratio improved to 3.07 in 2026Q1 from 2.57 in 2023Q4, as reported in financial statements, indicating a strong liquidity position despite cash outflows for the acquisition.
The current ratio of 3.07 and quick ratio of 1.88 in 2026Q1, based on reported figures, suggest that the company has ample short-term assets to cover its liabilities. This is particularly reassuring given the cash drawdown from $648M to $397M over the past year, as per balance sheet data. The liquidity cushion appears sufficient to absorb potential operational disruptions or input cost shocks, though the reliance on inventory (DIO of 59 days) means that a sharp demand downturn could pressure the quick ratio.
P/E Misleads on Cyclicality
The trailing P/E of 28.65, as per current valuation multiples, overstates PKG's earnings power because it fails to adjust for the cyclical trough in containerboard prices and the recent acquisition's integration costs.
The P/E ratio is commonly misapplied to PKG because it is a cyclical company with volatile earnings; a low P/E during a peak can be a trap, while a high P/E during a trough may signal a buying opportunity. In PKG's case, the trailing P/E of 28.65 is elevated relative to its historical average, but this reflects depressed earnings rather than an overvaluation. Investors should instead use EV/EBITDA or P/FCF, which are less distorted by non-cash charges and cyclical swings. The forward P/E of 23.45 suggests the market expects earnings to recover, but this hinges on the successful integration of the acquisition and stable input costs.