Amcor (AMCR), a maker of flexible and rigid packaging solutions, is not bothering to correct the accounting errors it says make the last three years of filings inaccurate.

In its latest annual report, Amcor quantified the errors and blamed its overseas operations for the myriad errors:

“In the second quarter of fiscal year 2026, the Company recorded out of period adjustments that increased cost of sales by $3 million, sales, general and administrative expense by $2 million and restructuring, transaction and integration expenses, net by $15 million with corresponding reductions in inventory of $12 million and other current assets of $8 million, which adjustments should have been recognized over the past 13 quarters related primarily to inventory discrepancies in our Asia operations.”

In total, the errors total approximately $40 million, which is the equivalent of:

—1.7% of Amcor’s total Net Income over the last three years
—1% of Amcor’s total Operating Cash Flow over the last three years

Amcor says the errors are not material and, instead of correcting each filing for the last thirteen quarters, made an out-of-period adjustment in the latest.

With an Enterprise Value (EV) of approximately $36 billion, Amcor is priced as if it will grow annual sales to more than $37.1 billion, up from an estimated $22.9 billion in 2026. To justify its current share price of $46.78 our Reverse DCF— which quantifies investor expectations embedded in the current share price— indicates Amcor must:

—Grow sales 5.5% annually for the next decade, significantly faster than the industry growth estimate of 4.21%
—Increase NOPAT margin to 8.6%, versus our 2025 estimate of 5.62% and three-year average estimate of 6.8%
—Increase Invested Capital (IC) Turns to 1, up from our three-year estimate of 0.7

Notably, the current share price also implies Valvoline increases Return on Invested Capital (ROIC) to 8.6% from our 2025 estimate of 4.2% and three-year average estimate of 5.4%: