Is Weyerhaeuser Co. overvalued or undervalued?

As of 24 April 2025, Weyerhaeuser Co. has moved from a valuation grade of very expensive to expensive. The company appears to be overvalued based on its current metrics, with a P/E ratio of 48, a Price to Book Value of 2.01, and an EV to EBITDA of 11.01. In comparison, its peers such as Realty Income Corp. have a significantly lower P/E ratio of 37.02 and an EV to EBITDA of 10.64, indicating that Weyerhaeuser's valuation is not justified relative to its industry.
Additionally, Weyerhaeuser's return on equity (ROE) stands at a low 4.16%, which further raises concerns about its valuation. The company's recent stock performance shows a decline of 8.41% over the past year, contrasting with a 10.26% return from the S&P 500, reinforcing the notion that Weyerhaeuser is overvalued in the current market environment.