Is International Paper Co. overvalued or undervalued?

Jun 25 2025 08:05 AM IST
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As of May 29, 2025, International Paper Co. is considered overvalued with a P/E ratio of 31 and lower efficiency metrics compared to peers, resulting in a valuation grade shift from fair to expensive and a year-to-date return of -14.36%, underperforming the S&P 500.
As of 29 May 2025, the valuation grade for International Paper Co. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 31, a Price to Book Value of 1.65, and an EV to EBITDA of 20.24, all of which are significantly higher than the industry averages.

In comparison to its peers, International Paper Co. has a higher P/E ratio than Amcor Plc at 23.92 and Packaging Corporation of America at 19.54, both of which are considered more attractively valued. Additionally, the company's ROCE of 2.03% and ROE of 5.35% reflect lower efficiency compared to its competitors. Notably, the stock has underperformed against the S&P 500, with a year-to-date return of -14.36% compared to the index's 2.44%, reinforcing the conclusion that the company is currently overvalued.
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