Industry Intelligence Releases Valuation of P&P Industry

 
Industry Intelligence Inc., Los Angeles, Calif., USA, a market intelligence and information management company serving the forest products, packaging, and food and beverage industries, this week released the July edition of its valuation roundup report for the pulp and paper industry. The valuation roundup report provides insight into whether a company is undervalued or overvalued through enterprise multiples, which go beyond a company's market capitalization by taking its net debt into consideration.
 
The full July report includes prior year's EV/EBITDA and forecast numbers for the end of the current year and the next fiscal year for all target companies as is available to Industry Intelligence clients. 

Comparing EV/EBITDA ratios among industry peers provides an objective assessment of how a company's value stacks up against those of its peers with different levels of debt and profitability.
 
Industry Intelligence observes equity analysts' insights and incorporates these estimates into the roundup. Naturally, different analysts will use different assumptions to make forecasts. Industry Intelligence lines up estimates from equity analysts from as wide a spectrum as possible to provide an unbiased view for our clients," Industry Intelligence noted.

Select highlights from the roundup are included below, with the full report including a detailed breakdown of each investment bank and equity research firms' forecasts on more than 25 global companies:
 
North American Companies

Canfor Pulp's valuation: 2014 ranging from 5.1x to 5.8x, 2015 ranging from 4.6x to 6.2x, and 2016 ranging from 3.9x to 4.8x.

Clearwater Paper's valuation: 2014 ranging from 6.4x to 6.6x, 2015 ranging from 7.0x to 7.2x, and 2016 ranging from 5.6x to 5.8x.

Domtar's valuation: 2014 ranging from 4.8x to 5.1x, 2015 ranging from 5.2x to 5.6x, and 2016 ranging from 4.9x to 5.1x.

International Paper's valuation: 2014 ranging from 6.6x to 7.2x, 2015 ranging from 6.4x to 7.6x, and 2016 ranging from 6.0x to 7.3x.

Rayonier Advanced Materials' valuation: 2014 ranging from 5.0x to 5.3x, 2015 ranging from 6.5x to 6.9x, and 2016 ranging from 7.2x to 7.6x.
Resolute Forest Products' valuation: 2014 ranging from 3.1x to 5.4x, 2015 ranging from 4.0x to 6.1x, and 2016 ranging from 3.2x to 5.7x.

Tembec's valuation: 2014 ranging from 9.0x to 9.5x, 2015 ranging from 9.3x to 14.4x, and 2016 ranging from 5.8x to 6.9x.

International Companies

Holmen's valuation: 2014 ranging from 7.1x to 9.3x, 2015 ranging from 7.2x to 9.3x, and 2016 ranging from 6.9x to 8.4x.

Sappi's valuation: 2014 ranging from 5.8x to 5.9x, 2015 ranging from 5.5x to 5.6x, and 2016 ranging from 5.1x to 5.6x.

Stora Enso's valuation: 2014 ranging from 6.8x to 8.1x, 2015 ranging from 6.3x to 7.5x, and 2016 ranging from 6.0x to 7.4x.

UPM-Kymmene's valuation: 2014 ranging from 7.0x to 8.4x, 2015 ranging from 6.5x to 7.7x, and 2016 ranging from 6.3x to 7.4x.

For more information, contact an Industry Intelligence customer service representative at +1-310-553-0008.  

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