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Is Smurfit Westrock Plc (NYSE:SW) Potentially Undervalued?

Simply Wall St · 1d ago

Smurfit Westrock Plc (NYSE:SW) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Smurfit Westrock’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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What's The Opportunity In Smurfit Westrock?

Smurfit Westrock appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Smurfit Westrock’s ratio of 26.97x is above its peer average of 20.65x, which suggests the stock is trading at a higher price compared to the Packaging industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Smurfit Westrock’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

View our latest analysis for Smurfit Westrock

What kind of growth will Smurfit Westrock generate?

earnings-and-revenue-growth
NYSE:SW Earnings and Revenue Growth December 28th 2025

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Smurfit Westrock. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in SW’s positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe SW should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on SW for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for SW, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Smurfit Westrock, you'd also look into what risks it is currently facing. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Smurfit Westrock.

If you are no longer interested in Smurfit Westrock, you can use our free platform to see our list of over 50 other stocks with a high growth potential.