International Paper Company

BASE:IPD Stock Report

Market Cap: US$19.9b

International Paper Valuation

Is IPD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IPD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IPD ($11) is trading below our estimate of fair value ($12.7)

Significantly Below Fair Value: IPD is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for IPD?

Key metric: As IPD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IPD. This is calculated by dividing IPD's market cap by their current earnings.
What is IPD's PE Ratio?
PE Ratio47.5x
EarningsUS$420.00m
Market CapUS$19.93b

Price to Earnings Ratio vs Peers

How does IPD's PE Ratio compare to its peers?

The above table shows the PE ratio for IPD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.9x
PKG Packaging Corporation of America
27.8x11.1%US$21.3b
AVY Avery Dennison
23.6x10.7%US$15.9b
AMCR Amcor
18.8x7.6%US$14.4b
SW Smurfit Westrock
125.3x32.7%US$27.7b
IPD International Paper
47.5x27.2%US$19.9b

Price-To-Earnings vs Peers: IPD is good value based on its Price-To-Earnings Ratio (47.5x) compared to the peer average (48.6x).


Price to Earnings Ratio vs Industry

How does IPD's PE Ratio compare vs other companies in the Global Packaging Industry?

12 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IPD 47.5xIndustry Avg. 17.8xNo. of Companies41PE01224364860+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IPD is expensive based on its Price-To-Earnings Ratio (47.5x) compared to the Global Packaging industry average (17.4x).


Price to Earnings Ratio vs Fair Ratio

What is IPD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IPD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IPD's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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