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International Paper (IP) Slides On Undervalued Calls, Is The Stock Still Cheap?

Simply Wall St · 1d ago

International Paper (IP) has drawn investor attention after a period of weaker share performance, with the stock down about 13% over the past month and roughly 16% in the past 3 months.

At a share price of US$31.88, International Paper has seen momentum fade, with the 7 day share price return down 2% and the year to date share price return down 21%. The 3 year total shareholder return of about 4% contrasts with a roughly 28% decline over five years, underscoring how sentiment around the business has swung as investors reassess both its earnings power and risk profile.

See how International Paper compares with other value opportunities by reviewing it alongside our hand picked list of 27 high quality undervalued stocks.

International Paper runs a large, established packaging operation, yet the share price has pulled back sharply in recent months. Is this simply a solid business at a temporarily weak price, or is the current valuation already fair?

Most Popular Narrative: 32% Undervalued

Against the last close of $31.88, the most followed narrative for International Paper points to a fair value of about $46.73, framing the recent share pullback as a potential valuation gap rather than a simple loss of confidence.

The company's substantial capital investments in automation, advanced manufacturing and mill reliability, funded by targeted asset divestitures and plant closures, are now tied to specific footprint changes. These investments are expected to contribute to the targeted structural cost removal of more than US$1b and are intended to lift net margins as remaining 80/20 and productivity initiatives roll through the income statement.

See why 16 investors see International Paper as 32% undervalued.

Result: Fair Value of $46.73 (UNDERVALUED)

Still, the narrative around International Paper could shift if muted containerboard demand persists, or if cost inflation and execution missteps continue to pressure profits and cash generation.

Find out about the key risks to this International Paper narrative.

Next Steps

If the mixed tone around International Paper leaves you unsure, move quickly from opinion to evidence by reviewing its 4 key rewards and 3 important warning signs.

Looking for more investment ideas beyond International Paper?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.