Discounted Cash Flow (DCF) Analysis Levered
International Paper Company (IP)
$40.785
-0.58 (-1.39%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 23,306 | 22,376 | 20,580 | 19,363 | 21,161 | 20,703.68 | 20,256.24 | 19,818.47 | 19,390.17 | 18,971.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,226 | 3,610 | 3,063 | 2,030 | 2,174 | 2,716.99 | 2,658.28 | 2,600.83 | 2,544.62 | 2,489.62 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,572 | -1,276 | -751 | -549 | -1,001.55 | -979.91 | -958.73 | -938.01 | -917.74 | -897.91 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,654 | 2,334 | 2,312 | 1,481 | 1,172.45 | 1,737.09 | 1,699.54 | 1,662.81 | 1,626.88 | 1,591.72 |
Weighted Average Cost Of Capital
| Share price | $ 40.785 |
|---|---|
| Beta | 0.975 |
| Diluted Shares Outstanding | 392.40 |
| Cost of Debt | |
| Tax Rate | 0.46 |
| After-tax Cost of Debt | 5.51% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.218 |
| Total Debt | 5,862 |
| Total Equity | 16,004.03 |
| Total Capital | 21,866.03 |
| Debt Weighting | 26.81 |
| Equity Weighting | 73.19 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 23,306 | 22,376 | 20,580 | 19,363 | 21,161 | 20,703.68 | 20,256.24 | 19,818.47 | 19,390.17 | 18,971.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,226 | 3,610 | 3,063 | 2,030 | 2,174 | 2,716.99 | 2,658.28 | 2,600.83 | 2,544.62 | 2,489.62 |
| Capital Expenditure | -1,572 | -1,276 | -751 | -549 | -1,001.55 | -979.91 | -958.73 | -938.01 | -917.74 | -897.91 |
| Free Cash Flow | 1,654 | 2,334 | 2,312 | 1,481 | 1,172.45 | 1,737.09 | 1,699.54 | 1,662.81 | 1,626.88 | 1,591.72 |
| WACC | ||||||||||
| PV LFCF | 1,126.19 | 1,025.08 | 933.04 | 849.26 | 773.01 | |||||
| SUM PV LFCF | 6,753.76 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.49 |
| Free cash flow (t + 1) | 1,623.55 |
| Terminal Value | 29,572.93 |
| Present Value of Terminal Value | 20,608.86 |
Intrinsic Value
| Enterprise Value | 27,362.63 |
|---|---|
| Net Debt | 5,058 |
| Equity Value | 22,304.63 |
| Shares Outstanding | 392.40 |
| Equity Value Per Share | 56.84 |