Is The ODP Corp. overvalued or undervalued?

As of 24 October 2025, The ODP Corp. has moved from fair to expensive in its valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 9, a Price to Book Value of 1.50, and an EV to EBITDA of 4.92, which are below the industry averages, indicating a potential mispricing relative to peers. For instance, a comparable company in the retailing sector has a P/E of approximately 14.06, suggesting that The ODP Corp. is trading at a discount despite its higher ROCE of 18.58% and ROE of 16.53%.
In terms of recent performance, The ODP Corp. has underperformed against the S&P 500 over various time frames, notably with a 1Y return of -9.07% compared to the S&P 500's 16.90%, and a significant 3Y decline of -30.79% versus the S&P 500's impressive 78.85% return. This underperformance further supports the conclusion that the stock is overvalued in the current market context.