Latest Ratios: P/E Ratio -5.3x · EV/EBITDA N/A · ROE -30.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $18.3B | $20.8B | $19.1B | $12.6B | $12.7B | $18.4B | $18.6B | $17.4B | $15.8B | $22.9B | $20.9B |
| Enterprise Value | $27.9B | $30.5B | $23.7B | $17.4B | $17.8B | $23.0B | $30.7B | $33.3B | $32.2B | $39.3B | $37.4B |
| P/E Ratio → | -5.28 | — | 34.28 | 41.55 | 8.45 | 10.51 | 38.59 | 17.94 | 7.86 | 10.69 | 23.05 |
| P/S Ratio | 0.76 | 0.84 | 1.02 | 0.67 | 0.60 | 0.95 | 1.06 | 0.95 | 0.68 | 1.05 | 1.07 |
| P/B Ratio | 1.23 | 1.40 | 2.33 | 1.51 | 1.50 | 2.03 | 2.37 | 2.25 | 2.14 | 3.50 | 4.79 |
| P/FCF | 243.79 | — | 25.18 | 18.24 | 10.22 | 12.45 | 8.06 | 7.45 | 9.57 | 62.61 | 18.48 |
| P/OCF | 10.77 | 12.25 | 11.36 | 6.88 | 5.85 | 9.08 | 6.08 | 4.82 | 4.91 | 13.04 | 8.43 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.22 | 1.28 | 0.92 | 0.84 | 1.19 | 1.75 | 1.82 | 1.38 | 1.81 | 1.92 |
| EV / EBITDA | — | 491.22 | 13.33 | 6.56 | 6.36 | 8.92 | 12.11 | 10.90 | 7.50 | 10.59 | 11.60 |
| EV / EBIT | — | — | 41.15 | 21.68 | 9.28 | 16.06 | 33.20 | 20.50 | 12.80 | 24.50 | 25.13 |
| EV / FCF | — | — | 31.37 | 25.16 | 14.29 | 15.50 | 13.28 | 14.25 | 19.46 | 107.50 | 33.14 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.5% | 29.5% | 28.2% | 20.4% | 28.4% | 28.6% | 23.8% | 30.8% | 33.3% | 31.9% | 31.2% |
| Operating Margin | -11.3% | -11.3% | 2.6% | 6.3% | 8.3% | 7.6% | 8.0% | 9.5% | 12.7% | 10.9% | 10.8% |
| Net Profit Margin | -14.1% | -14.1% | 3.0% | 1.6% | 7.1% | 9.0% | 1.3% | 6.7% | 8.6% | 9.9% | 4.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -30.6% | -30.6% | 6.7% | 3.6% | 17.1% | 20.7% | 3.0% | 16.2% | 28.9% | 39.3% | 21.8% |
| ROA | -11.6% | -11.6% | 2.4% | 1.3% | 6.1% | 6.2% | 0.7% | 3.7% | 6.0% | 6.4% | 2.8% |
| ROIC | -11.3% | -11.3% | 2.7% | 6.7% | 9.7% | 6.6% | 4.8% | 5.5% | 9.5% | 8.1% | 8.0% |
| ROCE | -11.6% | -11.6% | 2.5% | 6.2% | 8.8% | 6.6% | 5.8% | 6.5% | 10.3% | 8.2% | 7.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.73 | 0.73 | 0.72 | 0.71 | 0.69 | 0.64 | 1.59 | 2.12 | 2.30 | 2.67 | 4.04 |
| Debt / EBITDA | 174.24 | 174.24 | 3.29 | 2.22 | 2.10 | 2.26 | 4.95 | 5.37 | 3.95 | 4.69 | 5.45 |
| Net Debt / Equity | — | 0.65 | 0.57 | 0.57 | 0.60 | 0.50 | 1.53 | 2.06 | 2.22 | 2.51 | 3.80 |
| Net Debt / EBITDA | 155.77 | 155.77 | 2.63 | 1.80 | 1.81 | 1.76 | 4.76 | 5.20 | 3.81 | 4.42 | 5.13 |
| Debt / FCF | — | — | 6.19 | 6.92 | 4.07 | 3.05 | 5.22 | 6.80 | 9.89 | 44.89 | 14.66 |
| Interest Coverage | -8.01 | -8.01 | 1.34 | 1.91 | 4.75 | 3.32 | 1.55 | 2.31 | 3.43 | 2.12 | 2.14 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 1.51 | 1.67 | 1.35 | 1.71 | 1.36 | 0.77 | 1.49 | 1.62 | 1.64 |
| Quick Ratio | 1.02 | 1.02 | 1.09 | 1.19 | 0.97 | 1.27 | 1.16 | 0.51 | 1.01 | 1.17 | 1.09 |
| Cash Ratio | 0.14 | 0.14 | 0.27 | 0.28 | 0.16 | 0.37 | 0.64 | 0.06 | 0.13 | 0.20 | 0.25 |
| Asset Turnover | — | 0.66 | 0.82 | 0.81 | 0.88 | 0.77 | 0.55 | 0.55 | 0.69 | 0.64 | 0.59 |
| Inventory Turnover | 8.72 | 8.72 | 7.50 | 7.97 | 7.80 | 7.63 | 8.23 | 5.74 | 6.94 | 6.40 | 6.01 |
| Days Sales Outstanding | — | 64.89 | 65.91 | 67.38 | 64.94 | 68.05 | 61.57 | 73.19 | 61.33 | 55.18 | 53.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.4% | 4.7% | 3.4% | 5.1% | 5.3% | 4.2% | 4.3% | 4.6% | 5.0% | 3.4% | 3.5% |
| Payout Ratio | — | — | 115.4% | 212.6% | 44.7% | 44.5% | 350.4% | 65.0% | 39.2% | 35.9% | 81.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 2.9% | 2.4% | 11.8% | 9.5% | 2.6% | 5.6% | 12.7% | 9.4% | 4.3% |
| FCF Yield | 0.4% | — | 4.0% | 5.5% | 9.8% | 8.0% | 12.4% | 13.4% | 10.4% | 1.6% | 5.4% |
| Buyback Yield | 0.4% | 0.3% | 0.1% | 1.7% | 10.1% | 4.6% | 0.2% | 3.1% | 4.6% | 0.2% | 0.6% |
| Total Shareholder Yield | 5.7% | 5.0% | 3.5% | 6.8% | 15.4% | 8.8% | 4.6% | 7.7% | 9.6% | 3.6% | 4.1% |
| Shares Outstanding | — | $528M | $354M | $349M | $367M | $392M | $396M | $399M | $414M | $418M | $416M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying IP stock.
International Paper Company's current P/E ratio is -5.3x. The historical average is 33.2x.
International Paper Company's return on equity (ROE) is -30.6%. The historical average is 8.3%.
Based on historical data, International Paper Company is trading at a P/E of -5.3x. Compare with industry peers and growth rates for a complete picture.
International Paper Company's current dividend yield is 5.36%.
International Paper Company has 29.5% gross margin and -11.3% operating margin.
International Paper Company's Debt/EBITDA ratio is 174.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative earnings and leverage drift
Metrics are mathematically derived from official filings.
Trough Earnings Distort Headline Multiples
Based on EDBL's reported figures, IP trades at a trailing P/E of -5.10 and a forward P/E of 32.37, so the spread signals the market is pricing a recovery that current earnings do not yet show, against a 0.73 P/S ratio that appears more grounded in revenue.
The negative trailing multiple means earnings-based valuation is not meaningful on reported numbers, and the forward P/E of 32.37 implies investors are capitalizing a sharp earnings rebound that the latest quarterly results have not yet demonstrated. The forward EV/EBITDA of 7.54 sits in line with SON at 7.54 and above GPK at 6.26, which may suggest the market is treating IP as a mid-cycle packaging asset rather than a distressed one. The trailing EV/EBITDA of 1323.27 reflects depressed EBITDA rather than a meaningful valuation signal and should be disregarded.
Operating Margin Collapse Outpaces Gross Margin
As reported in financial statements, IP's gross margin held near 31.2% in the latest quarter while operating margin fell to -18.0%, a gap that suggests SG&A, impairments, or other non-gross items are absorbing most of the conversion economics.
Gross margin has stayed in a 27% to 31% band across recent quarters, which points to stable pricing and mill-level conversion economics rather than a collapse at the product level. The deterioration sits below gross profit, and the swing from +3.7% operating margin in Q3 2024 to -18.0% in Q3 2026 warrants investigation into whether these are recurring costs or one-time charges. Net margin of -18.2% in the latest quarter compared with PKG's 8.6% highlights a structural gap in earnings power versus the packaging peer set.
Negative Returns Erode Capital Compounding
According to recent SEC filings, IP's ROE fell to -8.2% in Q3 2026 and ROIC to -3.6%, down from 1.4% and 5.9% respectively two years earlier, indicating that returns on invested capital have reversed from modest positive to negative.
Returns on capital have decayed steadily, and the negative ROIC implies that recent operating losses are consuming rather than generating capital. Compared with PKG's ROIC of 12.6% and ROE of 14.9%, IP's return profile appears structurally weaker, which may reflect older asset intensity and the impairment-driven reduction in the equity base. Investors should monitor whether the portfolio pruning meaningfully lifts returns or simply shrinks the denominator.
Rising Leverage on a Shrinking Equity Base
Based on EDBL's reported figures, IP's debt-to-equity ratio rose from 0.56 in Q2 2025 to 0.77 in Q3 2026, while interest coverage turned negative at -11.44, suggesting debt service capacity has weakened materially.
The rise in leverage reflects equity erosion rather than new borrowing, as the equity cushion has contracted faster than total debt. Negative interest coverage indicates operating earnings are not currently covering interest expense, which may increase refinancing sensitivity if earnings do not recover. Net debt to EBITDA cannot be reliably computed on negative EBITDA, so the leverage picture relies on the D/E trend and coverage deterioration rather than a clean EBITDA-based measure.
Misapplied Earnings Multiple Obscures Asset Value
As reported in financial statements, the trailing P/E of -5.10 is the most commonly misapplied metric for IP, because it is distorted by impairments and restructuring charges that may not reflect run-rate earning power.
A trailing P/E on a company with large goodwill write-downs and negative net income produces a number that is mathematically valid but economically uninformative. A more defensible approach would be EV/EBITDA on normalized or adjusted EBITDA, or price to tangible book value given that net PP&E held near $15.5B while goodwill fell roughly 49%. This suggests the asset base, rather than reported earnings, may be the more relevant anchor for valuation until charge verification is complete.