International Paper Company (IP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-26.0%

$27.21

vs $36.78 price

Levered DCF

$38.29

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.01

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-5.87×	33.64×	43.55×	8.36×	10.44×	38.28×	14.06×	7.78×
P/B	1.4×	2.29×	1.5×	1.48×	2.01×	2.35×	2.23×	2.13×
P/S	0.84×	1×	0.66×	0.59×	0.94×	1.05×	0.94×	0.67×
EV / EBITDA	-313.98×	12.42×	7.63×	5.97×	8.99×	14.84×	11.3×	8.33×
Gross margin	29.5%	28.2%	20.4%	28.4%	28.6%	23.8%	30.8%	33.3%
Operating margin	-11.3%	2.6%	6.3%	8.3%	7.6%	8.0%	9.5%	12.7%
Net margin	-14.1%	3.0%	1.6%	7.1%	9.0%	1.3%	6.7%	8.6%
Current ratio	1.28×	1.51×	1.67×	1.35×	1.71×	1.36×	0.77×	1.49×
Debt / equity	0.73×	0.72×	0.71×	0.69×	0.64×	1.6×	2.12×	2.3×
Interest coverage	-7.58×	1.11×	2.82×	4.35×	3.41×	2.36×	2.49×	4.04×
Dividend yield	4.7%	3.4%	5.1%	5.3%	4.3%	4.4%	4.6%	5.0%
Payout ratio	-27.8%	115.4%	212.6%	44.7%	44.5%	350.4%	65.0%	39.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-23.7%	6.8%	3.6%	17.7%	19.3%	2.9%	15.9%	27.3%
Return on invested capital	-7.6%	2.5%	5.1%	8.9%	5.6%	2.9%	3.5%	7.9%
Return on assets	-9.3%	2.4%	1.3%	6.3%	6.9%	0.7%	3.7%	6.0%
Free cash flow yield	-0.8%	4.1%	5.5%	9.9%	8.1%	12.5%	13.5%	10.6%
Earnings yield	-16.9%	3.0%	2.4%	12.0%	9.6%	1.2%	7.1%	12.8%
Enterprise value	$30.5B	$23.4B	$17.3B	$17.6B	$22.8B	$30.5B	$33.1B	$32B
Net debt / EBITDA	-99.57×	2.49×	2.11×	1.71×	1.78×	5.87×	5.42×	4.26×
Cash conversion cycle (days)	-27	51	54	46	47	50	67	57