International Paper Company (IP) DCF Valuation
Two independent models estimate International Paper Company's fair value between $2.28 (conservative case) and $34.15 (analyst consensus).
What would today's price require?
$31.84 is justified only if free cash flow grows about +17.5% a year for the next decade — faster than the company has actually grown.
Current Price
$31.84
Fair-Value Range
$2.28 – $34.15
Market-Implied Growth
+17.5%/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
-92.8% vs $31.84
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 $31.84; 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 | $13.70 |
| 9.0% | $3.61 | $4.46 | $5.45 | $6.59 | $7.95 |
| 10.0% | $0.99 | $1.60 | $2.28 | $3.07 | $3.98 |
| 11.0% | — | — | — | $0.43 | $1.07 |
| 12.0% | — | — | — | — | — |
About International Paper Company
International Paper Company, established in 1898 and headquartered in Memphis, Tennessee, functions as a leading global packaging enterprise. Its extensive operational footprint spans the United States, Europe, the Middle East, Africa, the Pacific Rim, Asia, and various other regions across the Americas. The company's business activities are structured into two principal divisions: Industrial Packaging and Global Cellulose Fibers. The Industrial Packaging segment is dedicated to producing a diverse range of containerboards, which encompass linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. Concurrently, the Global Cellulose Fibers division supplies fluff, market, and specialized pulps. These pulps are integral components for a wide array of products, including absorbent hygiene items such as baby diapers, feminine care, and adult incontinence products, alongside other non-woven goods, and traditional tissue and paper products. Additionally, they find application in numerous non-absorbent sectors like textiles, filtration systems, building materials, paints and protective coatings, reinforced plastics, and various other industrial uses. International Paper distributes its products directly to ultimate consumers and converters, as well as through an established network of agents, resellers, and paper distributors.
- Sector
- Consumer Cyclical
- Industry
- Packaging & Containers
- CEO
- Andrew K. Silvernail