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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for International Paper Co. To summarize, we found that International Paper Co ranked in the 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 42.5% on a DCF basis. 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 7%; for context, that number is higher than merely 3.64% of tickers in our DCF set.
As a business, International Paper Co experienced a tax rate of about 25% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 80.16% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DLX, ARMK, CVCO, NCMI, and DECK 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.
Mondi (MONDF) (MONDY) is a company we've been interested in for a while now. Compared to other paper mills, it has the lowest cost asset base and a reasonably vertically integrated structure into sustainable forestry to make the ESG case. Although the ESG thesis still draws us to this stock,...
Mare Evidence Lab on Seeking Alpha | September 30, 2020
International Paper ([[IP]] -1.3%) prices its cash tender offer to repurchase upto $700M principal amount of notes, which includes the outstanding 3.00% notes due 2027 purchased in a separate offer.The company now offers to buy: 3.65% notes due 2024 at $1,111.66 per 1,000 principal amount; 3.80% notes due 2026 at $1,153.18...
MEMPHIS, Tenn., Sept. 22, 2020 /PRNewswire/ -- International Paper Company (NYSE: IP) (the "Company") announced today certain pricing terms for its previously announced cash tender offer (the "Waterfall Tender Offer") for up to $700 million combined aggregate principal amount, less the…
MEMPHIS, Tenn., Sept. 22, 2020 /PRNewswire/ -- International Paper Company (NYSE: IP) (the "Company") announced today the early tender results as of 5:00 p.m. on September 21, 2020 (the "Early Tender Deadline") for its previously announced cash tender offer (the "Waterfall Tender Offer")…