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 market position. Based on the current metrics, the company appears undervalued, particularly when considering its P/E ratio of 7, which is significantly lower than the peer average of approximately 7.93. Additionally, the EV to EBITDA ratio stands at 5.06, while the industry average is notably higher, suggesting that Sylvamo is trading at a discount relative to its peers.
In comparison to its industry, Sylvamo Corp. shows strong performance metrics, with a PEG ratio of 0.20 and a ROE of 32.52%, indicating efficient use of equity capital. Notably, while the stock has underperformed against the S&P 500 over the past year, with a return of -51.71% compared to the index's 14.08%, the recent valuation metrics suggest that the stock may offer a compelling opportunity for investors looking for value in the Paper, Forest & Jute Products sector.