Is Sylvamo Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Sylvamo Corp. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, particularly when considering its P/E ratio of 7, which is significantly lower than the industry average, and a PEG ratio of 0.20, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 5.06, further supporting the notion of undervaluation.
In comparison to peers, Sylvamo Corp. has a P/E ratio of 7.93 and an EV to EBITDA of 5.21, which highlights its competitive positioning within the industry. Notably, the company has a robust ROE of 32.52% and a high ROCE of 26.49%, indicating efficient use of capital. However, the stock has underperformed against the S&P 500, with a year-to-date return of -46.85% compared to the S&P 500's 13.30%, which underscores the potential for recovery given its attractive valuation metrics.