Packaging Corp of America shares overvalued amid rising costs despite strong shipments and stable dividends

Packaging Corporation of America reported record shipment volumes and price increases in Q2, but rising costs for freight, electricity, and inputs have offset margin gains. Despite a strong balance sheet and a steady 2.6% dividend yield, the company's shares trade at a high valuation of 20 times earnings, which is considered too expensive given limited profit growth prospects. The recommendation is to sell the stock, with a fair value estimate of $205–$210, below current market prices even under optimistic earnings assumptions.