A Fresh Look at International Flavors & Fragrances (IFF): Is There More Value Ahead?

International Flavors & Fragrances (IFF) shares have shown modest gains this week, catching the attention of investors interested in stability and long-term value. The stock’s recent performance prompts a closer look at where things stand today.

See our latest analysis for International Flavors & Fragrances.

After a challenging start to the year, International Flavors & Fragrances shares have begun to regain some ground. Short-term momentum is picking up as the 7-day and 30-day share price returns notably outpace the year-to-date and 1-year total shareholder losses. While the stock’s longer-term total shareholder returns remain in negative territory, the recent uptick may hint at shifting sentiment or renewed interest in the company’s stability and turnaround potential.

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With shares currently trading at a noticeable discount to analyst targets and mixed long-term returns, the real question is whether IFF remains undervalued or if all potential upside is already reflected in today’s price.

Most Popular Narrative: 15.7% Undervalued

International Flavors & Fragrances is currently priced at $69.20, while the widely followed fair value estimate stands noticeably higher. This gap has fueled bold views about the company’s future performance and its recovery strategy.

“Recent divestitures of commodity businesses and the ongoing strategic evaluation of the Food Ingredients segment are increasing IFF's focus on differentiated, higher-margin, innovation-driven products. This supports future margin expansion and higher earnings quality. Ongoing investments in R&D and capacity, especially in Health & Biosciences, Taste, and Specialty Fragrance Ingredients, are strengthening the company's innovation pipeline. Management expects these initiatives to accelerate revenue and profit growth beginning in 2026 and reaching full impact by 2027.”

Read the complete narrative.

Curious about the numbers behind this optimistic outlook? The narrative leans on ambitious projections for margin growth and a market-defying profit multiple. Find out what assumptions support this punchy fair value—what's driving analyst enthusiasm may surprise you.

Result: Fair Value of $82.08 (UNDERVALUED)

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

However, persistent weakness in key markets and ongoing challenges in product innovation could quickly undermine analyst optimism if conditions do not improve.

Find out about the key risks to this International Flavors & Fragrances narrative.

Another View: What Do Market Multiples Say?

Looking through the lens of price-to-sales, International Flavors & Fragrances is trading at 1.6x, which is more expensive than the US Chemicals industry average of 1.1x, yet actually below the peer group average of 1.9x. Compared to the fair ratio of 1.8x, the current valuation suggests a potential discount, but also highlights some risk if the market corrects closer to its sector average. Which reading do you trust as the better guide to value?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own International Flavors & Fragrances Narrative

If these perspectives do not fit your own thinking, or if you want to explore International Flavors & Fragrances from a different angle, you can easily build your personal narrative in just a few minutes. Do it your way

A great starting point for your International Flavors & Fragrances research is our analysis highlighting 2 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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