Should You Think About Buying International Flavors & Fragrances Inc. (NYSE:IFF) Now?

Let's talk about the popular International Flavors & Fragrances Inc. (NYSE:IFF). The company's shares received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$97.14 at one point, and dropping to the lows of US$75.28. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether International Flavors & Fragrances' current trading price of US$76.72 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at International Flavors & Fragrances’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for International Flavors & Fragrances

Is International Flavors & Fragrances Still Cheap?

According to my valuation model, International Flavors & Fragrances seems to be fairly priced at around 16% below my intrinsic value, which means if you buy International Flavors & Fragrances today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $91.83, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since International Flavors & Fragrances’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from International Flavors & Fragrances?

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. International Flavors & Fragrances' revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in IFF’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on IFF, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for International Flavors & Fragrances you should be aware of.

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.