Is International Paper Co. overvalued or undervalued?

As of 31 July 2025, the valuation grade for International Paper Co. has moved from very expensive to risky. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 31, significantly higher than its peers, such as Packaging Corporation of America with a P/E of 22.00 and Amcor Plc at 22.17. Additionally, the EV to EBITDA ratio of 20.24 further highlights the company's elevated valuation compared to the industry.
In terms of returns, International Paper Co. has underperformed relative to the S&P 500, with a year-to-date return of -12.47% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 3-year return of 33.72% versus the S&P 500's 70.41%. Overall, these metrics suggest that International Paper Co. is not only overvalued but also struggling to deliver competitive returns compared to broader market benchmarks.