Intrinsic value of International Paper - IP

Previous Close

$51.82

  Intrinsic Value

$30.02

stock screener

  Rating & Target

sell

-42%

Previous close

$51.82

 
Intrinsic value

$30.02

 
Up/down potential

-42%

 
Rating

sell

We calculate the intrinsic value of IP stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 21.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  11.50
  10.85
  10.27
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.20
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
Revenue, $m
  24,243
  26,874
  29,632
  32,518
  35,531
  38,671
  41,941
  45,342
  48,877
  52,552
  56,371
  60,339
  64,464
  68,752
  73,212
  77,852
  82,683
  87,713
  92,954
  98,418
  104,117
  110,063
  116,271
  122,754
  129,529
  136,609
  144,014
  151,759
  159,863
  168,345
Variable operating expenses, $m
  22,483
  24,885
  27,405
  30,040
  32,792
  35,660
  38,646
  41,752
  44,981
  48,337
  51,484
  55,108
  58,875
  62,792
  66,865
  71,103
  75,515
  80,109
  84,896
  89,887
  95,091
  100,522
  106,192
  112,113
  118,300
  124,767
  131,529
  138,603
  146,005
  153,752
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  22,483
  24,885
  27,405
  30,040
  32,792
  35,660
  38,646
  41,752
  44,981
  48,337
  51,484
  55,108
  58,875
  62,792
  66,865
  71,103
  75,515
  80,109
  84,896
  89,887
  95,091
  100,522
  106,192
  112,113
  118,300
  124,767
  131,529
  138,603
  146,005
  153,752
Operating income, $m
  1,761
  1,989
  2,228
  2,478
  2,739
  3,011
  3,295
  3,589
  3,896
  4,215
  4,887
  5,231
  5,588
  5,960
  6,347
  6,749
  7,168
  7,604
  8,058
  8,532
  9,026
  9,541
  10,079
  10,641
  11,229
  11,842
  12,484
  13,156
  13,858
  14,593
EBITDA, $m
  3,995
  4,428
  4,883
  5,359
  5,855
  6,373
  6,911
  7,472
  8,054
  8,660
  9,289
  9,943
  10,623
  11,329
  12,064
  12,829
  13,625
  14,454
  15,318
  16,218
  17,157
  18,137
  19,160
  20,228
  21,345
  22,512
  23,732
  25,008
  26,343
  27,741
Interest expense (income), $m
  682
  942
  1,114
  1,293
  1,481
  1,677
  1,882
  2,096
  2,318
  2,550
  2,791
  3,041
  3,301
  3,571
  3,852
  4,143
  4,447
  4,763
  5,092
  5,434
  5,791
  6,163
  6,551
  6,955
  7,378
  7,819
  8,280
  8,762
  9,266
  9,794
  10,345
Earnings before tax, $m
  818
  875
  935
  997
  1,062
  1,129
  1,199
  1,271
  1,346
  1,424
  1,846
  1,930
  2,017
  2,108
  2,203
  2,302
  2,405
  2,512
  2,624
  2,741
  2,863
  2,990
  3,124
  3,263
  3,409
  3,562
  3,722
  3,889
  4,065
  4,248
Tax expense, $m
  221
  236
  252
  269
  287
  305
  324
  343
  363
  384
  498
  521
  545
  569
  595
  621
  649
  678
  708
  740
  773
  807
  843
  881
  920
  962
  1,005
  1,050
  1,097
  1,147
Net income, $m
  597
  639
  682
  728
  775
  824
  875
  928
  983
  1,039
  1,347
  1,409
  1,473
  1,539
  1,608
  1,680
  1,755
  1,834
  1,915
  2,001
  2,090
  2,183
  2,280
  2,382
  2,489
  2,600
  2,717
  2,839
  2,967
  3,101

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  37,821
  41,925
  46,228
  50,730
  55,430
  60,329
  65,430
  70,736
  76,252
  81,984
  87,942
  94,133
  100,567
  107,257
  114,215
  121,454
  128,990
  136,838
  145,015
  153,539
  162,429
  171,706
  181,390
  191,504
  202,073
  213,119
  224,670
  236,753
  249,396
  262,629
Adjusted assets (=assets-cash), $m
  37,821
  41,925
  46,228
  50,730
  55,430
  60,329
  65,430
  70,736
  76,252
  81,984
  87,942
  94,133
  100,567
  107,257
  114,215
  121,454
  128,990
  136,838
  145,015
  153,539
  162,429
  171,706
  181,390
  191,504
  202,073
  213,119
  224,670
  236,753
  249,396
  262,629
Revenue / Adjusted assets
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
Average production assets, $m
  18,934
  20,988
  23,143
  25,397
  27,750
  30,202
  32,756
  35,412
  38,173
  41,043
  44,025
  47,125
  50,346
  53,695
  57,178
  60,803
  64,575
  68,504
  72,597
  76,865
  81,315
  85,959
  90,808
  95,871
  101,162
  106,692
  112,475
  118,523
  124,853
  131,478
Working capital, $m
  -170
  -188
  -207
  -228
  -249
  -271
  -294
  -317
  -342
  -368
  -395
  -422
  -451
  -481
  -512
  -545
  -579
  -614
  -651
  -689
  -729
  -770
  -814
  -859
  -907
  -956
  -1,008
  -1,062
  -1,119
  -1,178
Total debt, $m
  20,627
  23,942
  27,420
  31,057
  34,855
  38,813
  42,934
  47,221
  51,678
  56,310
  61,124
  66,126
  71,325
  76,731
  82,353
  88,202
  94,291
  100,632
  107,239
  114,126
  121,310
  128,805
  136,630
  144,803
  153,342
  162,267
  171,600
  181,363
  191,579
  202,271
Total liabilities, $m
  30,560
  33,875
  37,353
  40,990
  44,788
  48,746
  52,867
  57,154
  61,611
  66,243
  71,057
  76,059
  81,258
  86,664
  92,286
  98,135
  104,224
  110,565
  117,172
  124,059
  131,243
  138,738
  146,563
  154,736
  163,275
  172,200
  181,533
  191,296
  201,512
  212,204
Total equity, $m
  7,262
  8,050
  8,876
  9,740
  10,643
  11,583
  12,563
  13,581
  14,640
  15,741
  16,885
  18,073
  19,309
  20,593
  21,929
  23,319
  24,766
  26,273
  27,843
  29,479
  31,186
  32,967
  34,827
  36,769
  38,798
  40,919
  43,137
  45,457
  47,884
  50,425
Total liabilities and equity, $m
  37,822
  41,925
  46,229
  50,730
  55,431
  60,329
  65,430
  70,735
  76,251
  81,984
  87,942
  94,132
  100,567
  107,257
  114,215
  121,454
  128,990
  136,838
  145,015
  153,538
  162,429
  171,705
  181,390
  191,505
  202,073
  213,119
  224,670
  236,753
  249,396
  262,629
Debt-to-equity ratio
  2.840
  2.970
  3.090
  3.190
  3.280
  3.350
  3.420
  3.480
  3.530
  3.580
  3.620
  3.660
  3.690
  3.730
  3.760
  3.780
  3.810
  3.830
  3.850
  3.870
  3.890
  3.910
  3.920
  3.940
  3.950
  3.970
  3.980
  3.990
  4.000
  4.010
Adjusted equity ratio
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  597
  639
  682
  728
  775
  824
  875
  928
  983
  1,039
  1,347
  1,409
  1,473
  1,539
  1,608
  1,680
  1,755
  1,834
  1,915
  2,001
  2,090
  2,183
  2,280
  2,382
  2,489
  2,600
  2,717
  2,839
  2,967
  3,101
Depreciation, amort., depletion, $m
  2,235
  2,440
  2,655
  2,881
  3,116
  3,361
  3,617
  3,882
  4,158
  4,445
  4,403
  4,712
  5,035
  5,370
  5,718
  6,080
  6,458
  6,850
  7,260
  7,686
  8,132
  8,596
  9,081
  9,587
  10,116
  10,669
  11,247
  11,852
  12,485
  13,148
Funds from operations, $m
  2,832
  3,078
  3,338
  3,609
  3,891
  4,186
  4,492
  4,810
  5,141
  5,485
  5,750
  6,121
  6,507
  6,909
  7,326
  7,761
  8,213
  8,684
  9,175
  9,687
  10,221
  10,779
  11,361
  11,969
  12,605
  13,269
  13,964
  14,691
  15,452
  16,249
Change in working capital, $m
  -18
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
  -30
  -31
  -32
  -34
  -35
  -37
  -38
  -40
  -42
  -43
  -45
  -47
  -50
  -52
  -54
  -57
  -59
Cash from operations, $m
  2,849
  3,097
  3,357
  3,629
  3,912
  4,208
  4,515
  4,834
  5,166
  5,511
  5,777
  6,149
  6,536
  6,939
  7,357
  7,793
  8,247
  8,719
  9,212
  9,725
  10,261
  10,821
  11,405
  12,015
  12,652
  13,319
  14,016
  14,746
  15,509
  16,308
Maintenance CAPEX, $m
  -1,697
  -1,893
  -2,099
  -2,314
  -2,540
  -2,775
  -3,020
  -3,276
  -3,541
  -3,817
  -4,104
  -4,403
  -4,712
  -5,035
  -5,370
  -5,718
  -6,080
  -6,458
  -6,850
  -7,260
  -7,686
  -8,132
  -8,596
  -9,081
  -9,587
  -10,116
  -10,669
  -11,247
  -11,852
  -12,485
New CAPEX, $m
  -1,961
  -2,054
  -2,154
  -2,254
  -2,353
  -2,453
  -2,553
  -2,656
  -2,761
  -2,870
  -2,982
  -3,099
  -3,221
  -3,349
  -3,483
  -3,624
  -3,772
  -3,929
  -4,094
  -4,267
  -4,451
  -4,644
  -4,848
  -5,064
  -5,291
  -5,530
  -5,783
  -6,049
  -6,329
  -6,625
Cash from investing activities, $m
  -3,658
  -3,947
  -4,253
  -4,568
  -4,893
  -5,228
  -5,573
  -5,932
  -6,302
  -6,687
  -7,086
  -7,502
  -7,933
  -8,384
  -8,853
  -9,342
  -9,852
  -10,387
  -10,944
  -11,527
  -12,137
  -12,776
  -13,444
  -14,145
  -14,878
  -15,646
  -16,452
  -17,296
  -18,181
  -19,110
Free cash flow, $m
  -809
  -851
  -896
  -939
  -980
  -1,020
  -1,059
  -1,098
  -1,137
  -1,177
  -1,310
  -1,353
  -1,398
  -1,445
  -1,495
  -1,549
  -1,606
  -1,667
  -1,732
  -1,802
  -1,876
  -1,955
  -2,040
  -2,130
  -2,225
  -2,327
  -2,436
  -2,551
  -2,673
  -2,802
Issuance/(repayment) of debt, $m
  3,179
  3,316
  3,477
  3,638
  3,798
  3,958
  4,121
  4,287
  4,457
  4,632
  4,814
  5,002
  5,199
  5,405
  5,622
  5,849
  6,089
  6,341
  6,607
  6,887
  7,183
  7,496
  7,825
  8,172
  8,539
  8,926
  9,333
  9,763
  10,216
  10,693
Issuance/(repurchase) of shares, $m
  142
  149
  144
  136
  127
  116
  104
  91
  76
  61
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,321
  3,465
  3,621
  3,774
  3,925
  4,074
  4,225
  4,378
  4,533
  4,693
  4,814
  5,002
  5,199
  5,405
  5,622
  5,849
  6,089
  6,341
  6,607
  6,887
  7,183
  7,496
  7,825
  8,172
  8,539
  8,926
  9,333
  9,763
  10,216
  10,693
Total cash flow (excl. dividends), $m
  2,512
  2,614
  2,725
  2,835
  2,945
  3,055
  3,166
  3,280
  3,397
  3,517
  3,504
  3,650
  3,802
  3,960
  4,126
  4,300
  4,483
  4,674
  4,875
  5,086
  5,308
  5,541
  5,785
  6,043
  6,314
  6,598
  6,898
  7,212
  7,543
  7,891
Retained Cash Flow (-), $m
  -740
  -788
  -826
  -864
  -902
  -941
  -979
  -1,019
  -1,059
  -1,101
  -1,144
  -1,189
  -1,235
  -1,284
  -1,336
  -1,390
  -1,447
  -1,507
  -1,570
  -1,637
  -1,707
  -1,781
  -1,859
  -1,942
  -2,029
  -2,121
  -2,218
  -2,320
  -2,427
  -2,541
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,773
  1,826
  1,899
  1,970
  2,042
  2,114
  2,187
  2,261
  2,337
  2,416
  2,360
  2,461
  2,566
  2,676
  2,791
  2,910
  3,036
  3,167
  3,305
  3,449
  3,601
  3,759
  3,926
  4,101
  4,285
  4,477
  4,680
  4,892
  5,116
  5,350
Discount rate, %
  10.20
  10.71
  11.25
  11.81
  12.40
  13.02
  13.67
  14.35
  15.07
  15.82
  16.61
  17.45
  18.32
  19.23
  20.20
  21.21
  22.27
  23.38
  24.55
  25.77
  27.06
  28.42
  29.84
  31.33
  32.90
  34.54
  36.27
  38.08
  39.99
  41.98
PV of cash for distribution, $m
  1,609
  1,490
  1,379
  1,261
  1,138
  1,015
  892
  773
  661
  556
  435
  357
  288
  228
  177
  134
  100
  72
  51
  35
  24
  15
  10
  6
  4
  2
  1
  1
  0
  0
Current shareholders' claim on cash, %
  99.3
  98.7
  98.2
  97.7
  97.3
  97.0
  96.8
  96.5
  96.4
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3
  96.3

International Paper Company is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company's segments include Industrial Packaging, Global Cellulose Fibers, Printing Papers and Consumer Packaging. The Company is a manufacturer of containerboard in the United States. Its products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. The Company's cellulose fibers product portfolio includes fluff, market and specialty pulps. The Company is a producer of printing and writing papers. The products in Printing Papers segment include uncoated papers. The Company is a producer of solid bleached sulfate board. As of December 31, 2016, the Company operated 29 pulp, paper and packaging mills, 170 converting and packaging plants, 16 recycling plants and three bag facilities in the United States.

FINANCIAL RATIOS  of  International Paper (IP)

Valuation Ratios
P/E Ratio 25.7
Price to Sales 1.1
Price to Book 5.4
Price to Tangible Book
Price to Cash Flow 9.4
Price to Free Cash Flow 20.6
Growth Rates
Sales Growth Rate -5.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -20%
Cap. Spend. - 3 Yr. Gr. Rate 2.4%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity 255.1%
Total Debt to Equity 260.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.4%
Ret/ On Assets - 3 Yr. Avg. 4.3%
Return On Total Capital 6.3%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 22%
Return On Equity - 3 Yr. Avg. 17.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 28.1%
Gross Margin - 3 Yr. Avg. 30%
EBITDA Margin 13.6%
EBITDA Margin - 3 Yr. Avg. 13.6%
Operating Margin 7%
Oper. Margin - 3 Yr. Avg. 7.4%
Pre-Tax Margin 4.5%
Pre-Tax Margin - 3 Yr. Avg. 4.6%
Net Profit Margin 4.3%
Net Profit Margin - 3 Yr. Avg. 3.6%
Effective Tax Rate 25.8%
Eff/ Tax Rate - 3 Yr. Avg. 25.6%
Payout Ratio 81.1%

IP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IP stock intrinsic value calculation we used $21743 million for the last fiscal year's total revenue generated by International Paper. The default revenue input number comes from 2017 income statement of International Paper. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our IP stock valuation model: a) initial revenue growth rate of 11.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.2%, whose default value for IP is calculated based on our internal credit rating of International Paper, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of International Paper.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of IP stock the variable cost ratio is equal to 92.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for IP stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for International Paper.

Corporate tax rate of 27% is the nominal tax rate for International Paper. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the IP stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for IP are equal to 78.1%.

Life of production assets of 10 years is the average useful life of capital assets used in International Paper operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for IP is equal to -0.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6522 million for International Paper - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 413 million for International Paper is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of International Paper at the current share price and the inputted number of shares is $21.4 billion.

RELATED COMPANIES Price Int.Val. Rating
WRK WestRock 55.90 80.19  buy
KS KapStone Paper 34.50 13.54  str.sell
PKG Packaging of A 111.42 116.11  hold
CLW Clearwater Pap 25.40 34.71  hold
UFS Domtar 50.55 13.13  str.sell

COMPANY NEWS

▶ IP continues multimillion-dollar commitment to forest, wetlands   [Aug-01-18 02:59PM  American City Business Journals]
▶ IP reports 'best second quarter in more than a decade'   [03:22PM  American City Business Journals]
▶ International Paper: 2Q Earnings Snapshot   [07:17AM  Associated Press]
▶ International Paper Declares Dividend   [Jul-10-18 04:15PM  PR Newswire]
▶ Top Ranked Growth Stocks to Buy for July 9th   [Jul-09-18 09:57AM  Zacks]
▶ 3 Top Stocks to Buy in July   [Jul-08-18 09:00AM  Motley Fool]
▶ Charts Suggest Timber and Forestry Stocks Set to Drop   [Jul-03-18 09:10AM  Investopedia]
▶ Top Ranked Growth Stocks to Buy for June 26th   [Jun-26-18 10:19AM  Zacks]
▶ [$$] Graphic Packaging: Price Action   [Jun-25-18 06:00AM  The Wall Street Journal]
▶ Inside IP's customer commitment center: Putting boxes to the test   [03:54PM  American City Business Journals]
▶ [$$] International Paper CFO Glenn Landau Resigns   [Jun-20-18 07:27PM  The Wall Street Journal]
▶ IP CFO resigns, top execs shuffle roles   [05:52PM  American City Business Journals]
▶ Developer secures nearly $5M in tax credits for huge sports complex   [12:05PM  American City Business Journals]
▶ IP brushes off recent M&A attempt, looks to future   [03:39PM  American City Business Journals]
▶ New Strong Buy Stocks for June 12th   [Jun-12-18 10:42AM  Zacks]
▶ Americas Boxcar Pool Has a Leak in CSX   [Jun-10-18 07:43PM  The Wall Street Journal]
▶ America's Boxcar Pool Has a Leak in CSX   [08:00AM  The Wall Street Journal]
▶ [$$] International Paper Pulls Smurfit Kappa Bid   [03:08AM  The Wall Street Journal]
▶ [$$] Smurfit Kappa/International Paper: back in its box   [Jun-05-18 11:46PM  Financial Times]
▶ IP says international acquisition a no-go   [05:03PM  American City Business Journals]
▶ In M&A, Silence Can Be Golden   [07:08AM  Bloomberg]
▶ Best Dividend Stocks In NYSE   [Jun-02-18 09:02AM  Simply Wall St.]
▶ Shareholders of Irish company urge leaders to engage with IP   [May-24-18 03:28PM  American City Business Journals]
▶ How likely is IP to acquire a European packaging leader?   [May-17-18 02:56PM  American City Business Journals]
▶ IP CEO to attend Russian economic forum despite 'geopolitical tensions'   [May-11-18 03:27PM  American City Business Journals]
▶ International Paper Declares Dividend   [May-08-18 03:01PM  PR Newswire]
▶ Irish packaging company still not interested in IP's $11B offer   [May-04-18 03:29PM  American City Business Journals]
▶ Texas officials ignore dioxin spread in Houston waterways   [May-03-18 08:50AM  Associated Press]
▶ IP posts strong quarter, 'disappointed' in Smurfit acquisition progress   [01:09PM  American City Business Journals]
▶ International Paper: 1Q Earnings Snapshot   [07:28AM  Associated Press]
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