Does Silgan Stock Offer Value After Sustainable Packaging Investment and Latest Price Clim
October 26, 2025
If you’re holding Silgan Holdings, or even just eyeing it for your watchlist, you’re likely wondering whether now is your moment to act. The last few weeks have been interesting, with the stock climbing 3.3% over the past seven days, capping a more modest 4.9% gain over the last month. Yet it’s hard to ignore that Silgan is still down 12.7% for the year and 11.1% over the past twelve months. So what’s moving the needle?
Some of this turbulence traces back to shifts in the broader packaging industry. Headlines have focused on recent contract wins and ongoing investments in more sustainable packaging, both of which are helping to gradually reframe how investors see Silgan’s long-term risk and reward picture. At the same time, there has been general sector buzz about supply chain improvements and cost controls, topics that have become especially relevant as inflationary pressures begin to subside. These currents have not translated into any sensational price spikes, but they are quietly underpinning the stock’s recent momentum.
Here is something that might surprise you: based on a set of six standard valuation tests, Silgan Holdings comes in with a value score of 6, meaning it checks every single box for being undervalued. With that kind of score, it makes sense to dig deeper and look beyond surface-level moves. Next, let’s break down each valuation approach to see where Silgan stands. Stick around for a smarter way to think about valuation that goes beyond just the numbers.
A Discounted Cash Flow (DCF) model estimates a company’s true worth by projecting its future cash flows and discounting them back to today’s value. This method helps investors see beyond current stock prices and instead focuses on how much cash the business is likely to generate for shareholders over time.
For Silgan Holdings, the latest reported Free Cash Flow stands at approximately $93.5 million. Analyst forecasts and model estimates show a rising trend, with Free Cash Flow projected to reach about $650 million by 2035. While analysts provide detailed projections only up to 2027 ($483.4 million), further estimates are modeled using moderate growth assumptions for subsequent years.
Based on these assumptions, the model calculates an intrinsic value of $87.13 per share for Silgan Holdings. Compared to the current stock price, this implies a 48.8% discount, suggesting the shares are significantly undervalued by the market at this time.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Silgan Holdings is undervalued by 48.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.
The price-to-earnings (PE) ratio is a popular way to value companies that consistently generate profits, making it a solid choice for analyzing Silgan Holdings. This multiple works well because it relates a company’s stock price to its actual earnings, helping investors gauge whether shares are trading at a reasonable price relative to the business’s ability to generate income.
Growth expectations and risk levels play a major role in what counts as a “normal” or “fair” PE ratio. Faster-growing companies often command higher PE ratios, while businesses with higher risks or more uncertain prospects tend to trade at lower multiples.
Silgan Holdings currently trades at a PE ratio of 15.8x. This sits slightly below the Packaging industry average of 16.1x and notably beneath the average of its direct peers at 24.3x. While it might be tempting to judge the stock as undervalued against these benchmarks, it is wise to dig deeper.
That is where the Simply Wall St “Fair Ratio” comes in. This proprietary metric factors in not just peer comparisons, but also Silgan’s unique characteristics, including its growth outlook, profit margins, risk profile, industry dynamics, and market cap. Unlike traditional benchmarks, the Fair Ratio delivers a more holistic and tailored view of what Silgan’s PE ratio should be. In Silgan’s case, the Fair Ratio sits at 18.9x.
Since Silgan’s actual PE ratio (15.8x) is well below its Fair Ratio (18.9x), the shares look attractively valued by this approach as well.
Result: UNDERVALUED
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative lets you attach your own story or perspective to a company, backing it up with your assumptions for fair value and your estimates for future revenue, earnings and profit margins. This approach helps you connect the company’s big picture to real financial forecasts and a tangible share price.
Narratives make investing easier by helping you organize your thinking around why you believe a company like Silgan Holdings is undervalued or overvalued, all in one place. This tool, available on Simply Wall St’s Community page and trusted by millions of investors worldwide, guides you to compare your own Fair Value with the current market Price. This can help you decide whether to buy or sell with more confidence.
Best of all, Narratives dynamically update whenever something major changes, whether it is company results, news, or analyst updates, so your thesis always stays relevant. For instance, one Narrative on Silgan Holdings sees sustained earnings growth and higher margins from ongoing premium packaging trends, with a fair value up at $67.00. A more cautious view highlights risks from customer concentration and industry shifts, leading to a fair value as low as $47.00.
Do you think there’s more to the story for Silgan Holdings? Create your own Narrative to let the Community know!
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.
Companies discussed in this article include SLGN.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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