PKG PE Ratio 2026
Packaging Corp Of America Price to Earnings Analysis
Current P/E Ratio
24.90
Stock Price
$213.44
EPS (TTM)
$8.57
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
24.90
Based on last 12 months earnings
Materials Industry Avg
20.00
PKG is 24% above industry
What Does PKG P/E Ratio Mean?
Current Valuation
At a P/E ratio of 24.90, investors are paying $24.90 for every $1 of PKG's annual earnings. This moderate P/E is typical for established companies with steady earnings.
Industry Comparison
Compared to the Materials industry average P/E of 20, PKG is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $170.75
P/E: 19.92
20% lower
At $192.10
P/E: 22.41
10% lower
At $234.78
P/E: 27.40
10% higher
At $256.13
P/E: 29.89
20% higher
Get Complete PKG Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is PKG PE ratio?
PKG (Packaging Corp Of America) has a price-to-earnings (P/E) ratio of 24.90. This means investors are paying $24.90 for every $1 of PKG's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare PKG's P/E of 24.90 to its industry average and historical range.
Is PKG overvalued based on PE ratio?
PKG's P/E ratio of 24.90 is above the Materials industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). PKG's trailing P/E is 24.90. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For PKG, with a current price of $213.44 and EPS of $8.57, the P/E ratio is 24.91. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG ratio adjusts P/E for growth. PEG = P/E / Earnings Growth Rate. A PEG below 1.0 typically indicates good value. Calculate PKG's PEG ratio when earnings growth data is available.