Is The ODP Corp. overvalued or undervalued?

As of 7 July 2025, The ODP Corp. has moved from expensive to fair in valuation grade. The company appears to be fairly valued based on its P/E ratio of 9, a Price to Book Value of 1.50, and an EV to EBITDA of 4.92. In comparison, its peer, which has a P/E of 14.06 and an EV to EBITDA of 5.79, suggests that The ODP Corp. is positioned competitively within the retailing industry.
Despite its fair valuation, the company's recent stock performance has been underwhelming, with a 1-year return of -26.75% compared to the S&P 500's 17.14%, indicating significant underperformance. This trend is further highlighted by a 3-year return of -40.01% against the S&P 500's 70.41%, reinforcing the notion that while the stock may be fairly valued, it has struggled to keep pace with broader market returns.