Question 1

What is International Paper Co.'s WACC?

Accepted Answer

International Paper Co. (IP) has a Weighted Average Cost of Capital (WACC) of 7.64%. This is calculated using a Cost of Equity of 8.07% (via CAPM with a beta of 0.83) and a pre-tax Cost of Debt of 7.73%, with an equity weight of 77.95% in the capital structure.

Question 2

Is International Paper Co.'s WACC high or low?

Accepted Answer

International Paper Co.'s WACC of 7.64% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is International Paper Co.'s WACC calculated?

Accepted Answer

International Paper Co.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.07% is derived from the CAPM model using a beta of 0.83. The pre-tax Cost of Debt (Rd) is 7.73%. The capital structure is 77.95% equity and 22.05% debt.

International Paper Co. (IP) — WACC 分析

WACC 构成

解读

International Paper Co.（IP）WACC：7.64%

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International Paper Co.（IP） WACC 解读

IP 公司分析

IP DCF 估值

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