International Flavors & Fragrances Inc.

WBAG:IFF Stock Report

Market Cap: €22.3b

International Flavors & Fragrances Valuation

Is IFF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IFF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IFF (€86.4) is trading below our estimate of fair value (€100.81)

Significantly Below Fair Value: IFF is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IFF?

Key metric: As IFF is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for IFF. This is calculated by dividing IFF's market cap by their current revenue.
What is IFF's PS Ratio?
PS Ratio2x
SalesUS$11.42b
Market CapUS$23.22b

Price to Sales Ratio vs Peers

How does IFF's PS Ratio compare to its peers?

The above table shows the PS ratio for IFF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.5x
PPG PPG Industries
1.6x-1.3%US$28.4b
EMSN EMS-CHEMIE HOLDING
7.1x5.0%CHF 15.0b
RPM RPM International
2.4x3.1%US$17.7b
ASIANPAINT Asian Paints
6.8x8.4%₹2.4t
IFF International Flavors & Fragrances
2x1.0%€23.2b

Price-To-Sales vs Peers: IFF is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (4.5x).

Price to Sales Ratio vs Industry

How does IFF's PS Ratio compare vs other companies in the European Chemicals Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
IFF 2.0xIndustry Avg. 1.0xNo. of Companies29PS01.22.43.64.86+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: IFF is expensive based on its Price-To-Sales Ratio (2x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is IFF's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IFF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: IFF is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IFF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€86.40
€100.23
+16.0%
10.4%€122.69€72.67n/a20
Nov ’25€91.46
€100.45
+9.8%
11.2%€120.52€71.39n/a20
Oct ’25€94.50
€94.63
+0.1%
11.8%€116.75€69.15n/a22
Sep ’25€92.82
€94.76
+2.1%
11.5%€118.46€70.16n/a22
Aug ’25€91.32
€93.44
+2.3%
13.3%€120.06€64.65n/a22
Jul ’25€87.76
€91.77
+4.6%
13.1%€121.08€65.20n/a23
Jun ’25€89.12
€90.28
+1.3%
13.1%€120.37€64.81n/a22
May ’25€80.00
€83.09
+3.9%
14.9%€121.47€61.67n/a23
Apr ’25€79.20
€80.04
+1.1%
15.6%€121.03€61.45n/a23
Mar ’25€70.20
€77.81
+10.8%
14.9%€120.28€61.06n/a24
Feb ’25€74.40
€77.98
+4.8%
16.5%€120.03€61.86n/a22
Jan ’25€73.90
€72.90
-1.4%
16.4%€117.75€54.35n/a22
Dec ’24€70.10
€72.60
+3.6%
16.4%€118.34€54.62n/a22
Nov ’24€64.10
€74.42
+16.1%
18.7%€122.84€53.86€91.4622
Oct ’24€64.90
€77.97
+20.1%
19.4%€123.75€57.11€94.5021
Sep ’24€66.60
€77.01
+15.6%
19.1%€120.29€55.52€92.8222
Aug ’24€76.60
€95.89
+25.2%
16.0%€128.96€66.71€91.3222
Jul ’24€72.50
€102.38
+41.2%
16.7%€133.41€69.01€87.7622
Jun ’24€71.50
€105.82
+48.0%
15.8%€135.17€69.92€89.1221
May ’24€85.50
€104.78
+22.5%
14.7%€131.99€73.73€80.0020
Apr ’24€84.72
€107.00
+26.3%
15.2%€133.68€74.67€79.2020
Mar ’24€86.46
€109.04
+26.1%
15.6%€135.78€76.78€70.2021
Feb ’24€102.76
€114.37
+11.3%
11.9%€137.85€88.22€74.4021
Jan ’24€98.33
€115.61
+17.6%
13.3%€146.23€83.96€73.9021
Dec ’23€100.80
€115.43
+14.5%
14.9%€149.02€79.80€70.1021
Nov ’23€97.48
€131.07
+34.5%
16.9%€172.19€81.03€64.1020

Analyst Forecast: Target price is less than 20% higher than the current share price.

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