Interparfums (IPAR): Evaluating Valuation After Steady Q3 Earnings and 2025 Guidance

Interparfums (IPAR) revealed its third quarter results, showing sales and earnings that were nearly unchanged from last year. The company also provided 2025 guidance pointing to stable performance and confirmed its regular dividend payout.

See our latest analysis for Interparfums.

While Interparfums has kept its performance steady and highlighted a regular dividend, investors have reacted cautiously, with the stock’s year-to-date share price return at -32% and the 1-year total shareholder return down 28%. However, looking at a longer timeframe, the 5-year total shareholder return is a robust 82%, showing that momentum may fluctuate, but staying power is important.

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With shares trading well below analyst targets and expectations for only modest growth in the year ahead, the big question is whether Interparfums is now undervalued or if the market is simply reflecting the company’s future earnings outlook.

Most Popular Narrative: 36% Undervalued

At a last close of $87.43, Interparfums stands well below the most popular narrative’s fair value estimate of $136.67. This creates a significant value gap and raises the question of what catalysts might justify such an optimistic outlook.

Expansion into digital channels and targeted global marketing is strengthening market reach, supporting higher margins and international growth. Diversified luxury fragrance portfolio and supply chain optimization are expected to drive category leadership and earnings stability.

Read the complete narrative.

Want a peek under the hood? The secret sauce in this valuation is bold growth bets on digital expansion, luxury branding, and supply chain moves that could shake up traditional profit forecasts. Wondering what financial leaps the narrative is banking on? Uncover the hidden drivers by exploring the full breakdown behind the fair value call.

Result: Fair Value of $136.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the company’s reliance on licensed brands and the risk of shifting consumer preferences could undermine long-term growth if not carefully managed.

Find out about the key risks to this Interparfums narrative.

Build Your Own Interparfums Narrative

If you’re not convinced by these conclusions or want to shape your own perspective, dive into the data and build your own narrative in just a few minutes with Do it your way

A great starting point for your Interparfums research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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