International Paper Price To Book vs. Current Valuation

IP Stock  USD 54.45  0.61  1.13%   
Considering International Paper's profitability and operating efficiency indicators, International Paper's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess International Paper's ability to earn profits and add value for shareholders. As of 12/24/2024, Sales General And Administrative To Revenue is likely to grow to 0.09, while Price To Sales Ratio is likely to drop 0.52. At this time, International Paper's Operating Income is relatively stable compared to the past year. As of 12/24/2024, Net Income From Continuing Ops is likely to grow to about 1.2 B, though Total Other Income Expense Net is likely to grow to (765.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.2795
Significantly Down
Pretty Stable
Net Profit Margin0.02580.0152
Way Up
Very volatile
Operating Profit Margin0.06410.0628
Fairly Up
Pretty Stable
Pretax Profit Margin0.01920.0202
Notably Down
Very volatile
Return On Assets0.02130.0124
Way Up
Very volatile
Return On Equity0.03270.0345
Notably Down
Pretty Stable
For International Paper profitability analysis, we use financial ratios and fundamental drivers that measure the ability of International Paper to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well International Paper utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between International Paper's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of International Paper over time as well as its relative position and ranking within its peers.
  

International Paper's Revenue Breakdown by Earning Segment

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To learn how to invest in International Stock, please use our How to Invest in International Paper guide.
Is Paper & Plastic Packaging Products & Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of International Paper. If investors know International will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about International Paper listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.11)
Dividend Share
1.85
Earnings Share
1.17
Revenue Per Share
53.745
Quarterly Revenue Growth
0.016
The market value of International Paper is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Paper's value that differs from its market value or its book value, called intrinsic value, which is International Paper's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because International Paper's market value can be influenced by many factors that don't directly affect International Paper's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between International Paper's value and its price as these two are different measures arrived at by different means. Investors typically determine if International Paper is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Paper's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

International Paper Current Valuation vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining International Paper's current stock value. Our valuation model uses many indicators to compare International Paper value to that of its competitors to determine the firm's financial worth.
International Paper is rated below average in price to book category among its peers. It is considered the number one company in current valuation category among its peers reporting about  10,773,825,916  of Current Valuation per Price To Book. Comparative valuation analysis is a catch-all technique that is used if you cannot value International Paper by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

International Current Valuation vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

International Paper

P/B

 = 

MV Per Share

BV Per Share

 = 
2.19 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

International Paper

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
23.62 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

International Current Valuation vs Competition

International Paper is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 160.33 Billion. International Paper retains roughly 23.62 Billion in current valuation claiming about 15% of all equities under Materials industry.

International Paper Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in International Paper, profitability is also one of the essential criteria for including it into their portfolios because, without profit, International Paper will eventually generate negative long term returns. The profitability progress is the general direction of International Paper's change in net profit over the period of time. It can combine multiple indicators of International Paper, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.6 B-1.6 B
Operating Income1.2 B1.7 B
Income Before Tax382 M362.9 M
Total Other Income Expense Net-806 M-765.7 M
Net Income288 M273.6 M
Income Tax Expense59 M56 M
Net Income Applicable To Common Shares1.7 B1.1 B
Net Income From Continuing Ops757 M1.2 B
Non Operating Income Net Other-18.4 M-17.5 M
Interest Income166 M207.7 M
Net Interest Income-238 M-249.9 M
Change To Netincome-292.5 M-277.9 M
Net Income Per Share 0.83  1.36 
Income Quality 6.36  3.56 
Net Income Per E B T 0.75  0.41 

International Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on International Paper. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of International Paper position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the International Paper's important profitability drivers and their relationship over time.

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Additional Tools for International Stock Analysis

When running International Paper's price analysis, check to measure International Paper's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy International Paper is operating at the current time. Most of International Paper's value examination focuses on studying past and present price action to predict the probability of International Paper's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move International Paper's price. Additionally, you may evaluate how the addition of International Paper to your portfolios can decrease your overall portfolio volatility.