Sonoco Products Company logo SON - Sonoco Products Company

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 9
HOLD 8
SELL 4
STRONG
SELL
0
| PRICE TARGET: $59.00 DETAILS
HIGH: $69.00
LOW: $47.00
MEDIAN: $60.00
CONSENSUS: $59.00
UPSIDE: 2.75%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 30.7% below fair value
Current Price $57.42
Bear Case $66.26 15.4% upside ($66.26 - $57.42) / $57.42 = 15.4% $6.05 × 12x P/E
Fair Value $82.82 44.2% upside ($82.82 - $57.42) / $57.42 = 44.2% $6.05 × 15x P/E
Bull Case $99.39 73.1% upside ($99.39 - $57.42) / $57.42 = 73.1% $6.05 × 18x P/E

Adjust Assumptions

15.0x
6.05$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 9.5x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $59.00 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $82.82 per share.

Warnings

The company's reported profits differ from official accounting profits by 52%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $43.61 (below our primary estimate by 52%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $59.00 (from 21 analysts). Our estimate is 54% above the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples