Discounted Cash Flow (DCF) Analysis Unlevered

International Paper Company (IP)

$34.145

+0.03 (+0.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 58.99 | 34.145 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 23,30622,37620,58019,36321,16120,703.6820,256.2419,818.4719,390.1718,971.12
Revenue (%)
EBITDA 3,7963,6953,0062,8762,9763,160.373,092.073,025.252,959.872,895.90
EBITDA (%)
EBIT 2,4682,3891,7191,6661,9361,961.541,919.151,877.681,837.101,797.39
EBIT (%)
Depreciation 1,3281,3061,2871,2101,0401,198.831,172.921,147.571,122.771,098.51
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 5895115,4451,5408041,781.401,742.901,705.241,668.391,632.33
Total Cash (%)
Account Receivables 3,9163,6733,4193,6103,7653,572.073,494.883,419.353,345.453,273.15
Account Receivables (%)
Inventories 2,2412,2082,0501,8141,9421,987.141,944.201,902.181,861.071,820.85
Inventories (%)
Accounts Payable 2,4132,4232,3202,6062,7082,431.072,378.532,327.122,276.832,227.63
Accounts Payable (%)
Capital Expenditure -1,572-1,276-751-549-931-966.10-945.22-924.80-904.81-885.26
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 34.145
Beta 1.032
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 9.157
Total Debt 5,862
Total Equity 13,398.50
Total Capital 19,260.50
Debt Weighting 30.44
Equity Weighting 69.56
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 23,30622,37620,58019,36321,16120,703.6820,256.2419,818.4719,390.1718,971.12
EBITDA 3,7963,6953,0062,8762,9763,160.373,092.073,025.252,959.872,895.90
EBIT 2,4682,3891,7191,6661,9361,961.541,919.151,877.681,837.101,797.39
Tax Rate -12.97%39.53%25.85%18.82%0.46%14.34%14.34%14.34%14.34%14.34%
EBIAT 2,788.111,444.721,274.701,352.481,927.031,680.321,644.011,608.481,573.721,539.71
Depreciation 1,3281,3061,2871,2101,0401,198.831,172.921,147.571,122.771,098.51
Accounts Receivable -243254-191-155192.9377.2075.5373.9072.30
Inventories -33158236-128-45.1442.9542.0241.1140.22
Accounts Payable -10-103286102-276.93-52.54-51.40-50.29-49.21
Capital Expenditure -1,572-1,276-751-549-931-966.10-945.22-924.80-904.81-885.26
UFCF 2,544.111,760.722,119.702,344.481,855.031,783.901,939.311,897.401,856.391,816.27
WACC
PV UFCF 1,6511,661.111,504.121,361.981,233.27
SUM PV UFCF 7,411.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.05
Free cash flow (t + 1) 1,852.60
Terminal Value 30,621.44
Present Value of Terminal Value 20,792.26

Intrinsic Value

Enterprise Value 28,203.73
Net Debt 5,058
Equity Value 23,145.73
Shares Outstanding 392.40
Equity Value Per Share 58.99