Is Rayonier, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Rayonier, Inc. has moved from attractive to very attractive, indicating a stronger outlook for the company. Based on the current metrics, Rayonier appears to be undervalued. The P/E ratio stands at 10, which is significantly lower than the industry average, while the EV to EBITDA ratio is 5.30, and the PEG ratio is an impressive 0.09, suggesting that the stock is trading at a discount relative to its growth potential.
In comparison to its peers, Rayonier's P/E ratio of 5.41 is notably lower than AGNC Investment Corp.'s 28.50 and Vornado Realty Trust's 9.71, reinforcing the notion of undervaluation. Additionally, the company's ROCE of 31.02% and ROE of 18.29% highlight strong profitability metrics. However, it is worth noting that Rayonier has underperformed against the S&P 500 across multiple time frames, with a 1-year return of -17.57% compared to the index's 17.14%, which may contribute to its current undervaluation perception.