International Paper Company (IP) DCF Valuation
Transparent DCF models put International Paper Company (IP)'s fair value in a range of $2.28 – $33.78 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $34.12 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $34.12, the market is pricing in roughly +18.1%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -25.3%. The price is betting on acceleration above its track record.
Current Price
$34.12
Fair-Value Range
$2.28 – $33.78
Market-Implied Growth
+18.1%/yr
vs -25.3% 5Y actual
IP DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $633.3M · 0.53B shares · net debt $9.2B
Estimated Fair Value
$2.28
-93.3% vs $34.12
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $34.12; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $7.04 | $8.29 | $9.77 | $11.54 | $13.71 |
| 9.0% | $3.61 | $4.46 | $5.45 | $6.60 | $7.96 |
| 10.0% | $0.99 | $1.60 | $2.28 | $3.07 | $3.98 |
| 11.0% | — | — | — | $0.43 | $1.07 |
| 12.0% | — | — | — | — | — |