Value Sense
PKG
Packaging Corporation of America (PKG)
Last Price$209.4(1.7%)
Market Cap$19.0B
WACC
6.8%
Cost of Equity
7.7%
Cost of Debt
0.3%
Debt to Equity
14.6%
Beta
0.9
Stock quality
6/10
Good
PKG
is 28.4% overvalued
learn more -->
50+
undervalued stocks
Start beating the S&P 500

PKG WACC

Recent WACC calculation

as of Mar 03, 2025
Cost of Equity
% share of Total Capital
7.7%
87.2%
Risk-free rate
4.2%
Beta
0.8
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.3%
12.8%
Average Cost of Debt
0.4%
Effective Tax Rate
24.2%
WACC
6.8%

WACC dynamics

Best stock ideas on the market right now

With Value Sense, you can find undervalued stocks list with intrinsic value. Discover more stock market investment ideas.

Undervalued stocks right now

Undervalued stocks right now

Discover the top 20 best undervalued stocks to buy for Mar 2025, listed on the Nasdaq or NYSE.

3M Return 32.1%
S&P Outperformance 19.1%
Next 3M Predicted Return 20.3%
Low P/E stocks

Low P/E stocks

Explore the best low P/E stocks to buy in 2025, featuring top companies trading at low P/E ratios.

3M Return 7.5%
S&P Outperformance -5.5%
Next 3M Predicted Return 10.2%
Undervalued dividend stocks

Undervalued dividend stocks

Discover the top 20 best undervalued high-yield dividend stock that offers both growth potential and attractive dividend returns for Mar 2025.

3M Return 28.4%
S&P Outperformance 15.4%
Next 3M Predicted Return 16.9%

PKG Cost of Equity

Recent Cost of Equity calculation

as of Mar 03, 2025
Risk-free rate
4.2%
Beta
0.8
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
7.7%

Cost of Equity dynamics

PKG vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Packaging Corporation of America logo
Packaging Corporation of AmericaPKG
6.8%
(8.0%)
(23.0%)
9.8%
Median Peer Set
6.3%
(5.5%)
(5.4%)
5.4%
Sealed Air Corporation logo
Sealed Air CorporationSEE
9.7%
(2.7%)
(29.7%)
6.2%
Berry Global Group, Inc. logo
Berry Global Group, Inc.BERY
8.3%
(3.2%)
(11.6%)
4.2%
Ball Corporation logo
Ball CorporationBALL
8.2%
(15.9%)
483.1%
34.0%
Amcor plc logo
Amcor plcAMCR
7.7%
(7.2%)
(28.2%)
5.4%
International Paper Company logo
International Paper CompanyIP
6.9%
(1.6%)
80.5%
3.0%
Silgan Holdings Inc. logo
Silgan Holdings Inc.SLGN
5.8%
(6.6%)
(2.9%)
5.4%
WestRock Company logo
WestRock CompanyWRK
5.5%
(4.5%)
N/A
(8.1%)
Reynolds Consumer Products Inc. logo
Reynolds Consumer Products Inc.REYN
5.1%
(3.7%)
18.3%
9.7%
Graphic Packaging Holding Company logo
Graphic Packaging Holding CompanyGPK
4.4%
(6.6%)
(7.9%)
7.5%
Crown Holdings, Inc. logo
Crown Holdings, Inc.CCK
negative
(7.2%)
(37.4%)
3.7%

Explore more intrinsic value tools hub for PKG

Peter Lynch Fair Value
Margin of safety
Reverse DCF
Relative Value
DCF value calculator
Ben Graham Fair Value
Intrinsic Value
Peter Lynch charts
Earnings growth model
Earnings Power Value

FAQ

What is Packaging Corporation of America's discount rate as of Mar 03, 2025?

As of Mar 03, 2025, Packaging Corporation of America's discount rate is 6.79%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Packaging Corporation of America's capital structure and risk profile.

What is Packaging Corporation of America's weighted average cost of capital (WACC)?

Packaging Corporation of America's WACC as of Mar 03, 2025, is 6.79%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Packaging Corporation of America's cost of equity?

Packaging Corporation of America's cost of equity is 7.7%, as of Mar 03, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.