Is International Flavors & Fragrances (IFF) Offering Value After Years Of Share Price Weakness

International Flavors & Fragrances Inc.

International Flavors & Fragrances Inc.

IFF

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  • For readers wondering whether International Flavors & Fragrances is attractively priced right now or if the recent share moves are already baking in the story, this article walks through the numbers so you can judge the value for yourself.
  • The stock closed at US$71.14, with a recent 7-day return of a 6.2% decline, a 30-day return of 0.6%, a year-to-date return of 4.6%, and a 1-year return of a 4.4% decline that sits against a 3-year return of a 20.6% decline and a 5-year return of a 42.8% decline.
  • Recent coverage around International Flavors & Fragrances has focused on how the business is positioned within the broader chemicals and ingredients sector, including its product mix and balance sheet considerations. This context helps explain why the share price has seen both shorter-term resilience and longer-term pressure.
  • On Simply Wall St's valuation checklist the company currently scores 5 out of 6. The sections that follow will compare what different valuation methods suggest about the stock, then conclude with a broader way to think about value that goes beyond any single model.

Approach 1: International Flavors & Fragrances Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today using a required rate of return, giving an estimate of what the business might be worth right now.

For International Flavors & Fragrances, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow stands at about $345.5 million. Analysts provide explicit forecasts out to 2028, where free cash flow is projected at $1.15 billion. Simply Wall St then extrapolates this path further out to 2035 using gradually moderating growth assumptions.

After discounting these cash flows back to today, the DCF model arrives at an estimated intrinsic value of about $119.22 per share, compared with the recent share price of $71.14. That gap implies the stock is trading at roughly a 40.3% discount to this DCF estimate. This indicates potential upside if the cash flow path and discount rate prove reasonable.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests International Flavors & Fragrances is undervalued by 40.3%. Track this in your watchlist or portfolio, or discover 56 more high quality undervalued stocks.

IFF Discounted Cash Flow as at Apr 2026
IFF Discounted Cash Flow as at Apr 2026

Approach 2: International Flavors & Fragrances Price vs Sales

For companies where earnings can be affected by non cash items or one off charges, a Price to Sales, or P/S, multiple is often useful because it focuses on the revenue that the business generates rather than the bottom line. Investors usually pay a higher or lower P/S depending on what they expect for future growth and how risky they believe those sales are, so a "normal" level tends to reflect both prospects and perceived stability.

International Flavors & Fragrances currently trades on a P/S of 1.67x. That sits below the average for its Chemicals industry, which stands at 1.11x, and below the average of its peer group at 2.34x. Simply Wall St also provides a proprietary “Fair Ratio” of 1.88x for the company, which is the P/S multiple suggested by factors such as earnings growth, industry, profit margins, market cap and specific risks.

This Fair Ratio can give a more tailored anchor than a simple industry or peer comparison because it adjusts for the company’s own profile instead of assuming it should trade like the group. Comparing the current 1.67x P/S to the 1.88x Fair Ratio indicates the shares are trading below that modelled level.

Result: UNDERVALUED

NYSE:IFF P/S Ratio as at Apr 2026
NYSE:IFF P/S Ratio as at Apr 2026

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Upgrade Your Decision Making: Choose your International Flavors & Fragrances Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives bring your view of International Flavors & Fragrances together with the numbers by letting you write a clear story about the business, link that story to explicit forecasts for revenue, earnings and margins, and translate those forecasts into a Fair Value you can compare with the current share price.

On Simply Wall St’s Community page, Narratives are an accessible tool used by many investors to set out their assumptions, see a Fair Value based on those inputs, and then quickly judge whether the shares look expensive or inexpensive relative to that Fair Value. This can help you decide whether it might be the right time to buy more, trim, or simply watch.

Narratives also respond when new information arrives. If International Flavors & Fragrances reports earnings, updates 2026 guidance, or announces portfolio moves, the Fair Value linked to that Narrative refreshes automatically and keeps your story and numbers aligned without extra effort.

For example, one Narrative on Simply Wall St currently assigns a Fair Value of US$100.00 to International Flavors & Fragrances while another assigns US$77.61. Those two views reflect different assumptions about future earnings, profit margins and the P/E multiple. This shows how the same company can reasonably support more optimistic or more cautious stories that you can compare with today’s US$71.14 share price.

Do you think there's more to the story for International Flavors & Fragrances? Head over to our Community to see what others are saying!

NYSE:IFF 1-Year Stock Price Chart
NYSE:IFF 1-Year Stock Price Chart

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.