Is The ODP Corp. overvalued or undervalued?

As of 7 May 2025, The ODP Corp. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 9, an EV to EBITDA of 4.92, and a Price to Book Value of 1.50. In comparison, peers such as Rush Enterprises, Inc. have a P/E of 13.16, while PriceSmart, Inc. shows a significantly higher P/E of 23.21, indicating that The ODP Corp. is trading at a lower valuation relative to its peers.
Despite its fair valuation, The ODP Corp. has underperformed in recent stock returns, with a year-to-date decline of 24.80% compared to a modest gain of 2.44% for the S&P 500. This underperformance, coupled with its current ratios, suggests that while the company is not undervalued, it may face challenges in regaining investor confidence.