What is International Paper Company (IP) DCF Fair Value and Intrinsic Value in 2026?

International Paper Company (IP) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is International Paper Company's historical Return on Invested Capital (ROIC) and Moat Rating?

International Paper Company operates in the Basic Materials sector (Packaging & Containers) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is International Paper Company's financial health rating and Piotroski F-Score?

International Paper Company's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor International Paper Company (IP) for quarterly SEC filing thesis breaks?

LocalAlpha audits International Paper Company's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksIP

IP

International Paper CompanyConsumer Cyclical / Packaging & ContainersINTACT

International Paper Company produces and sells renewable fiber-based packaging in North America, Latin America, Europe, South America, and North Africa. It operates through two segments, Packaging Solutions North America and Packaging Solutions EMEA. The company offers linerboard, medium, whitetop, and saturating kraft; and converts containerboard into corrugated boxes, bulk bins, shipping containers and specialty packaging through its converting facilities. Its products support customers in various industries, such as food and beverage, agriculture, industrial manufacturing, personal care pharmaceuticals and consumer goods. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

Share Price

$34.36

52W: $29.26 - $50.25

DCF Fair Value

$41.73

+17.7%

Thesis Hub

P/E (TTM)

20x

ROIC

Operating Margin

2.3%

FCF Yield

Debt / Equity

0.69x

Piotroski Score

5/9

Altman Z-Score

3.75

Market Cap

$18.2B

Price vs. Intrinsic Value Corridor

Modest Value ($34.36 vs $41.73 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$41.73

MOS Buy Target (-25%)

$31.30

Valuation Overlays: DCF Fair Value ($41.73) 25% MOS Buy Target ($31.30)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$34.36

DCF Fair Value

$41.57

+17.3%

Starting Free Cash Flow ($M)$1,646M

$100M$1,646M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$9,200M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$13.5B

PV of Terminal Value

$17.7B

Implied Enterprise Value

$31.2B

Implied Equity Value

$22.0B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,733	$1,825	$1,922	$2,024	$2,131	$2,227	$2,327	$2,432	$2,541	$2,656
Present Value (PV)	$1,590	$1,536	$1,484	$1,434	$1,385	$1,328	$1,273	$1,220	$1,170	$1,122

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $-5.39BVPS: $27.30

Revised Graham Formula

N/A

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings8.6% Yield

$2.95 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.6BYield: 8.6%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-2.2% CAGR (Next 10 Yrs)

At the current price of $34.36, the market is assuming the business will compound Free Cash Flow at -2.2% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil IP with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for International Paper Company. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 2.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: International Paper Company (IP) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for International Paper Company.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, International Paper Company has an estimated DCF intrinsic fair value of $41.73 per share compared to its current market price of $34.36. This represents an estimated 17.7% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $N/A.