Is Louisiana-Pacific Corp. overvalued or undervalued?

As of 3 October 2025, Louisiana-Pacific Corp. has moved from fair to attractive in its valuation grade. The company appears to be undervalued, particularly when considering its P/E ratio of 19, which is significantly lower than the peer average of 26.87 for comparable firms. Additionally, the EV to EBITDA ratio stands at 12.38, while peers like Mohawk Industries, Inc. show a more favorable ratio of 8.52, indicating potential for growth. The PEG ratio of 0.56 further supports the notion of undervaluation, suggesting that the stock is priced attractively relative to its earnings growth.
In terms of recent performance, Louisiana-Pacific Corp. has experienced a 1-week return of 6.72%, outperforming the S&P 500's return of 1.09%. However, over the longer term, the stock has lagged behind the S&P 500, with a year-to-date return of -12.69% compared to the index's 14.18%. Despite this, the strong ROCE of 28.91% and ROE of 24.27% indicate robust operational efficiency, reinforcing the case for the stock's attractive valuation.