International Paper Co (IP) is slightly undervalued and Sonoco Products Co (SON) is undervalued.
Against our estimates of intrinsic value, SON trades at the wider discount: a margin of safety of +48%, against +9% for IP.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 6.5% (average of 3 methods) values the shares at $97.75; the price of $50.69 is 48% below that value, and 85% of that value comes from beyond year five.
Leak Score 86/100 on 3 of 12 signals
| Metric | IP | SON |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $35.71 | $50.69 |
| Intrinsic value | $39.36 | $97.75 |
| Margin of safety | +9% | +48% |
| Leak Score | 27/100 (8/12) | 86/100 (3/12) |
| Market cap | $18.9B | $5.0B |
| Revenue growth, 5 years | 6.1% | 7.5% |
| Operating margin | 0.9% | 10.0% |
| Net margin | -14.1% | 8.7% |
| Return on equity | -16.5% | 18.9% |
| Debt to equity | 0.83 | 1.33 |
| P/E | — | 7.8x |
| Forward P/E | 11.8x | 8.0x |
| P/B | 1.3x | 1.4x |
| Dividend yield | 5.3% | 4.2% |