Assessing Silgan Holdings (SLGN) Valuation After Recent Share Price Momentum

With no single headline event driving the move, Silgan Holdings (SLGN) has drawn attention after a month and past 3 months of positive share performance, prompting investors to reassess its packaging-focused business.

See our latest analysis for Silgan Holdings.

The recent 30-day share price return of 13.51% and 90-day share price return of 27.93% contrast with a 1-year total shareholder return decline of 8.65%. This suggests momentum in the share price while longer term holders have had a tougher run.

If Silgan’s move has you thinking about where else capital could work in packaging related supply chains, it may be worth scanning our 24 power grid technology and infrastructure stocks as a next step.

Silgan now trades at US$48.65, with analysts' average target implying around 14% upside and an estimated intrinsic value suggesting a wider 43% gap. Is the stock still undervalued, or is the market already pricing in future growth?

Most Popular Narrative: 2% Undervalued

Silgan’s most followed narrative pegs fair value at about $49.64, a touch above the last close at $48.65, suggesting the market is close to that estimate.

Ongoing expansion in pet food packaging, now about 50% of Metal Containers segment volume, leverages demographic and secular trends around pet ownership and premiumization of pet products, positioning Silgan for consistent revenue and margin tailwinds.

Read the complete narrative.

Curious what sits behind that modest undervaluation call? The narrative leans on measured revenue growth, firmer margins, and a future earnings multiple that stays below current sector levels.

Result: Fair Value of $49.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering destocking pressure and customer concentration, including the loss of a food can client, could still upset the margin expansion story that investors are watching.

Find out about the key risks to this Silgan Holdings narrative.

Next Steps

Mixed signals on Silgan so far? If you want to move fast and form your own view, carefully consider the 4 key rewards and 1 important warning sign before deciding what the story really is.

Looking for more investment ideas?

If Silgan has sharpened your focus, do not stop here. Broaden your watchlist now so you do not miss other opportunities lining up for attention.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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