Is Packaging Corporation of America overvalued or undervalued?

As of 18 June 2025, the valuation grade for Packaging Corporation of America has moved from attractive to fair. The company is currently fairly valued, with a P/E ratio of 21, a Price to Book Value of 3.93, and an EV to EBITDA of 10.99. In comparison to peers, International Paper Co. is considered expensive with a P/E of 29.86, while Owens Corning is rated fair with a P/E of 12.86, indicating that Packaging Corporation of America is positioned more favorably within its industry.
Despite its fair valuation, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -16.18% compared to the index's 2.44%. This underperformance, coupled with a robust ROCE of 19.76% and a PEG ratio of 1.16, suggests that while the company is fairly valued, there may be potential for improvement in market perception and stock performance moving forward.