Is Rayonier, Inc. overvalued or undervalued?

As of 27 June 2025, Rayonier, Inc. has moved from an attractive to a very attractive valuation grade, indicating a shift in market perception. The company is currently undervalued, with a P/E ratio of 10, significantly lower than its peers such as Rithm Capital Corp., which has a P/E of 8.29, and Apartment Income REIT Corp. at 8.87. Additionally, Rayonier's EV to EBITDA stands at 5.30, while Rithm Capital's is notably lower at 1.38, further supporting the undervaluation thesis.
Rayonier's PEG ratio of 0.09 highlights its growth potential relative to its valuation, suggesting that it is trading at a discount compared to its earnings growth prospects. The company's ROCE of 31.02% and ROE of 18.29% also indicate strong operational efficiency and profitability. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -15.25% compared to the index's 4.96%, the underlying financial metrics suggest that Rayonier, Inc. presents a compelling investment opportunity at its current price of 22.12.