International Paper - Comparative Multiple Analysis

International Paper (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of International Paper

WikiWealth compares International Paper's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with International Paper's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for International Paper.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to International Paper's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for International Paper's Analysis

How does this work? The Comparative Investment Analysis determines the value of International Paper by comparing International Paper financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of International Paper.

See the International Paper cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in International Paper.

Also, see the International Paper's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and International Paper's valuation conclusion for a quick summary.