International Paper Company

NYSE:IP Stock Report

Market Cap: US$15.3b

International Paper Valuation

Is IP 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 IP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IP ($45.46) is trading below our estimate of fair value ($60.21)

Significantly Below Fair Value: IP is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

IP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA10x
PEG Ratio3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.9x
AMCR Amcor
22.1x10.0%US$14.3b
WRK WestRock
45.8x29.5%US$13.7b
PKG Packaging Corporation of America
22.9x9.6%US$16.1b
AVY Avery Dennison
33x12.4%US$18.3b
IP International Paper
84.9x28.4%US$15.3b

Price-To-Earnings vs Peers: IP is expensive based on its Price-To-Earnings Ratio (84.9x) compared to the peer average (30.9x).


Price to Earnings Ratio vs Industry

How does IP's PE Ratio compare vs other companies in the North American Packaging Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: IP is expensive based on its Price-To-Earnings Ratio (84.9x) compared to the North American Packaging industry average (22.9x).


Price to Earnings Ratio vs Fair Ratio

What is IP'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.

IP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio84.9x
Fair PE Ratio30.2x

Price-To-Earnings vs Fair Ratio: IP is expensive based on its Price-To-Earnings Ratio (84.9x) compared to the estimated Fair Price-To-Earnings Ratio (30.2x).


Analyst Price Targets

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

The above table shows the analyst IP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$45.46
US$42.43
-6.7%
14.6%US$57.00US$37.00n/a7
May ’25US$35.28
US$39.03
+10.6%
5.2%US$43.00US$36.60n/a7
Apr ’25US$39.03
US$38.17
-2.2%
7.7%US$43.00US$35.00n/a7
Mar ’25US$35.05
US$37.80
+7.8%
7.1%US$43.00US$35.00n/a9
Feb ’25US$34.36
US$39.41
+14.7%
8.5%US$46.00US$34.00n/a9
Jan ’25US$36.15
US$36.95
+2.2%
10.3%US$41.00US$30.00n/a8
Dec ’24US$37.19
US$36.58
-1.7%
11.5%US$41.00US$30.00n/a8
Nov ’24US$33.61
US$36.50
+8.6%
11.4%US$41.00US$30.00n/a8
Oct ’24US$35.47
US$37.13
+4.7%
13.7%US$43.00US$27.00n/a8
Sep ’24US$35.19
US$36.40
+3.4%
22.5%US$55.00US$26.00n/a10
Aug ’24US$35.94
US$35.93
-0.03%
22.7%US$55.00US$26.00n/a10
Jul ’24US$31.81
US$35.12
+10.4%
23.2%US$55.00US$24.00n/a11
Jun ’24US$29.17
US$36.39
+24.8%
21.2%US$55.00US$26.00n/a11
May ’24US$33.24
US$38.04
+14.4%
21.4%US$55.00US$26.00US$35.2812
Apr ’24US$36.06
US$40.54
+12.4%
16.5%US$55.00US$30.00US$39.0312
Mar ’24US$36.69
US$41.54
+13.2%
14.6%US$55.00US$32.00US$35.0512
Feb ’24US$40.85
US$38.19
-6.5%
20.8%US$55.00US$25.00US$34.3613
Jan ’24US$34.63
US$37.81
+9.2%
25.5%US$55.00US$25.00US$36.1513
Dec ’23US$37.39
US$37.68
+0.8%
25.2%US$55.00US$25.00US$37.1914
Nov ’23US$33.53
US$37.54
+11.9%
25.4%US$55.00US$25.00US$33.6114
Oct ’23US$31.70
US$44.58
+40.6%
19.0%US$60.00US$27.50US$35.4713
Sep ’23US$41.31
US$47.15
+14.1%
12.5%US$60.00US$37.00US$35.1913
Aug ’23US$42.82
US$47.23
+10.3%
12.5%US$60.00US$37.00US$35.9413
Jul ’23US$41.98
US$51.08
+21.7%
12.2%US$60.00US$37.00US$31.8113
Jun ’23US$47.45
US$51.92
+9.4%
10.3%US$60.00US$41.00US$29.1713
May ’23US$46.28
US$52.31
+13.0%
10.6%US$60.00US$41.00US$33.2413

Analyst Forecast: Target price is lower than the current share price.


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