International Paper operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, Africa, and the Middle East. The company operates through three segments: Industrial Packaging, Printing Papers, and Consumer Packaging. The company was founded in 1898 and is based in Memphis, Tennessee.
IP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for IP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that International Paper Co ranked in the 71th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of International Paper Co, consider:
International Paper Co's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 4.38% of tickers in our DCF set.
As a business, International Paper Co experienced a tax rate of about 21% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 88.05% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HBI, OXM, TUP, CPRI, and CVGI can be thought of as valuation peers to IP, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.