Understanding International Paper Stocks – Essential Fundamentals for Investors

Large-cap Basic Materials company International Paper has moved 5.9% so far today on a volume of 8,655,801, compared to its average of 6,561,058. In contrast, the S&P 500 index moved -1.0%.

International Paper trades 11.17% away from its average analyst target price of $39.67 per share. The 6 analysts following the stock have set target prices ranging from $37.0 to $43.0, and on average have given International Paper a rating of hold.

Anyone interested in buying IP should be aware of the facts below:

  • International Paper's current price is 109.9% above its Graham number of $21.01, which implies that at its current valuation it does not offer a margin of safety

  • International Paper has moved 37.5% over the last year, and the S&P 500 logged a change of 27.8%

  • Based on its trailing earnings per share of 0.53, International Paper has a trailing 12 month Price to Earnings (P/E) ratio of 83.2 while the S&P 500 average is 15.97

  • IP has a forward P/E ratio of 16.0 based on its forward 12 month price to earnings (EPS) of $2.75 per share

  • The company has a price to earnings growth (PEG) ratio of 1.11 — a number near or below 1 signifying that International Paper is fairly valued compared to its estimated growth potential

  • Its Price to Book (P/B) ratio is 1.85 compared to its sector average of 2.07

  • International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa.

  • Based in Memphis, the company has 39,000 full time employees and a market cap of $15.32 Billion. International Paper currently returns an annual dividend yield of 4.4%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.