Packaging Corp of America: Undervalued Despite Recent Share Pullback and Greif Acquisition News

Packaging Corporation of America's share price has dropped 3.4% in the last week and 12.7% year to date, after a strong multiyear climb of 58.0% over 3 years and 68.6% over 5 years. The company's ongoing shifts in packaging demand and supply chain dynamics have investors weighing the pros and cons, but PCA scores a 4/6 valuation check, suggesting it is undervalued on several fronts. The Discounted Cash Flow model values the stock at an intrinsic value of $397.34 per share, implying a 50.5% discount compared to the current share price, suggesting the market is pricing in a weaker cash flow trajectory than the model assumes.