Avery Dennison Corp (AVY) is slightly overvalued and International Paper Co (IP) is slightly undervalued.
Against our estimates of intrinsic value, IP trades at the wider discount: a margin of safety of +9%, against -6% for AVY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $162.49; the price of $172.09 is 6% above that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 8.2% (average of 2 methods) values the shares at $39.36; the price of $35.71 is 9% below that value, and 78% of that value comes from beyond year five.
Leak Score 27/100 on 8 of 12 signals
| Metric | AVY | IP |
|---|---|---|
| Verdict | Slightly overvalued | Slightly undervalued |
| Price | $172.09 | $35.71 |
| Intrinsic value | $162.49 | $39.36 |
| Margin of safety | -6% | +9% |
| Leak Score | 59/100 (3/12) | 27/100 (8/12) |
| Market cap | $13.0B | $18.9B |
| Revenue growth, 5 years | 4.9% | 6.1% |
| Operating margin | 13.3% | 0.9% |
| Net margin | 7.6% | -14.1% |
| Return on equity | 31.2% | -16.5% |
| Debt to equity | 1.58 | 0.83 |
| P/E | 18.8x | — |
| Forward P/E | 15.4x | 11.8x |
| P/B | 5.6x | 1.3x |
| Dividend yield | 2.3% | 5.3% |