Is Owens Corning overvalued or undervalued?

As of 2 May 2024, Owens Corning's valuation grade has moved from attractive to fair, indicating a shift in its market position. The company is currently fairly valued based on its P/E ratio of 13, which is slightly below the industry average of approximately 12.86. Additionally, Owens Corning exhibits a robust ROE of 25.13% and a solid ROCE of 20.52%, reflecting strong profitability metrics.
In comparison to peers, Packaging Corporation of America is rated attractive with a P/E of 19.54, while International Paper Co. is considered expensive with a P/E of 29.86. Despite Owens Corning's fair valuation, its recent stock performance has lagged behind the S&P 500, with a year-to-date return of -20.48% compared to the index's 2.44%. Overall, the company appears to be fairly valued, with potential for improvement in its market perception.