Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.28%, lower than industry average of 5.41%.

Growth Trajectory

Profitability

In the growth phase company makes 4.35% profit on every dollar of sales, lower than industry average of 8.24%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.96% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
11.33B USD
Equity Value
2.08B USD
FCF Yield
18.04%
Average ROIC
3.69%
Cost of Capital
7.00%
P/E Ratio
67.36x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues21.93B USD18.62B USD
Operating Income or EBIT491M USD740M USD
Interest Expense490M USD430M USD
Book Value Of Equity18.62B USD8.17B USD
Book Value Of Debt10.39B USD5.85B USD
Cash and Marketable Securities1.14B USD1.17B USD
Number of Shares Outstanding527.90M--
Minority interests0 USD0 USD
Current Stock Price46.99 USD--
Effective Tax Rate25.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
+12.40%
17.80%Company
vs
5.40%Industry
Above Industry
Operating Margin
-6.00%
2.23%Company
vs
8.23%Industry
Below Industry
International Paper Company shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 78% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 8.88B USD Add
Present Value (Cash Flow Over Next 10 Years) 2.45B USD Add
Value of Operating Assets 11.33B USD Sub-total
Debt 10.39B USD Subtract
Minority Interests — Subtract
Cash 1.13B USD Add
Value of Equity 2.08B USD Sub-total
Number of Shares 527.90M shares Divisor
Estimated Value per Share (Fair Value) 3.94 USD Total
Current Market Price 46.99 USD Reference

Financial Projections

Total FCF Present Value
2.45B USD
Avg Revenue Growth
4.01%
Avg Operating Margin
4.81%
Avg ROIC
3.69%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue22.83B USD23.81B USD24.83B USD25.89B USD27.00B USD28.18B USD29.42B USD30.73B USD32.13B USD33.61B USD35.15B USD
Growth Rate 4.11% 4.28% 4.28% 4.28% 4.28% 4.34% 4.41% 4.47% 4.53% 4.59% 4.59%
PROFITABILITY
Operating Income511.18M USD867.56M USD1.07B USD1.30B USD1.55B USD1.62B USD1.69B USD1.76B USD1.84B USD1.93B USD2.02B USD
Operating Margin 2.23% 3.64% 4.34% 5.04% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
EBIT (1-tax)383.38M USD650.67M USD809.35M USD980.43M USD1.16B USD1.21B USD1.26B USD1.32B USD1.38B USD1.44B USD1.51B USD
CASH FLOW
Reinvestment527.31M USD549.90M USD573.46M USD598.02M USD632.85M USD712.83M USD754.94M USD799.87M USD847.82M USD886.82M USD789.89M USD
Free Cash Flow-143.94M USD100.76M USD235.89M USD382.40M USD531.82M USD502.48M USD513.96M USD525.80M USD537.99M USD562.74M USD726.35M USD
Terminal Value--------------------17.17B USD
Present Value-135.84M USD89.75M USD198.28M USD303.36M USD398.16M USD353.12M USD337.22M USD320.38M USD302.81M USD291.04M USD—
EFFICIENCY
ROIC 1.37% 2.29% 2.79% 3.32% 3.86% 3.95% 4.03% 4.11% 4.19% 4.27% 8.83%
Cost of Capital 5.95% 5.95% 5.95% 5.95% 5.95% 6.53% 7.10% 7.68% 8.25% 8.83% 8.83%
Sales/Capital 1.85x 1.85x 1.85x 1.85x 1.85x 1.74x 1.74x 1.74x 1.74x 1.74x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($M)
Reinvestment ($M)