TacticScaleWhat International Paper Does & How It Makes Money (IP)
Updated October 2026 · reflects International Paper's latest reported financials
Maker of renewable fiber-based packaging and corrugated boxes. It earns revenue by selling containerboard grades such as linerboard and medium, and by converting containerboard into corrugated boxes, bulk bins and specialty packaging that it sells to manufacturers and brands across many industries.
How International Paper makes money
It earns revenue by selling containerboard grades such as linerboard and medium, and by converting containerboard into corrugated boxes, bulk bins and specialty packaging that it sells to manufacturers and brands across many industries.
What International Paper does
International Paper Company, founded in 1898 and headquartered in Memphis, Tennessee, produces renewable fiber-based packaging. It makes containerboard grades, including linerboard, medium, whitetop and saturating kraft, and converts containerboard into corrugated boxes, bulk bins, shipping containers and specialty packaging at its converting facilities. The company reports two segments, Packaging Solutions North America and Packaging Solutions EMEA, and sells in North America, Latin America, Europe, South America and North Africa. Its customers include food and beverage, agriculture, industrial manufacturing, personal care, pharmaceutical and consumer goods companies, so demand for its packaging depends on how much goods these industries produce and ship.
Products & services
- Linerboard
- Corrugating medium
- Whitetop linerboard
- Saturating kraft
- Corrugated boxes
- Bulk bins and shipping containers
What is International Paper worth?
On an owner-earnings DCF, International Paper's most-likely value is about $16 versus a recent price near $32 (52% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$11) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 16.3× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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Packaging Corporation of America (PKG) · Graphic Packaging Holding (GPK) · Smurfit Westrock (SW) · Amcor (AMCR) · Greif (GEF)