Is Sylvamo Corp. overvalued or undervalued?

As of 4 June 2025, Sylvamo Corp. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 7, significantly lower than the industry average, indicating strong potential for growth. Key ratios include a Price to Book Value of 2.41, an EV to EBITDA of 5.06, and a PEG Ratio of 0.20, all suggesting that the stock is priced favorably compared to its earnings and growth prospects.
In comparison to peers, Sylvamo Corp. has a P/E of 6.98 and an EV to EBITDA of 4.83, which are lower than many competitors in the sector, reinforcing its undervaluation. Notably, the company's ROCE stands at 26.49% and ROE at 32.52%, highlighting efficient capital use and strong profitability. Despite recent underperformance against the S&P 500, with a year-to-date return of -35.75% compared to the index's 2.44%, the underlying fundamentals suggest that Sylvamo Corp. presents a compelling investment opportunity at its current price.