At US$81.60, Is International Flavors & Fragrances Inc. (NYSE:IFF) Worth Looking At Closely?

Today we're going to take a look at the well-established International Flavors & Fragrances Inc. (NYSE:IFF). The company's stock saw a decent share price growth of 11% on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine International Flavors & Fragrances’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for International Flavors & Fragrances

What Is International Flavors & Fragrances Worth?

According to our valuation model, International Flavors & Fragrances seems to be fairly priced at around 2.04% above our intrinsic value, which means if you buy International Flavors & Fragrances today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $79.97, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because International Flavors & Fragrances’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of International Flavors & Fragrances look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted revenue growth of 3.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for International Flavors & Fragrances, at least in the short term.

What This Means For You

Are you a shareholder? IFF’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on IFF, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into International Flavors & Fragrances, you'd also look into what risks it is currently facing. For example, International Flavors & Fragrances has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

If you are no longer interested in International Flavors & Fragrances, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.