• Wondering if Interparfums at around US$91.70 is offering good value right now, or if the stock’s recent swings are masking what it is really worth.
• The share price closed at US$91.70, with returns of around 1.2% over the last month and 7.3% year to date, while the 1 year return of a 21.1% decline gives a very different picture to the 45.9% gain over 5 years.
• Recent news flow around Interparfums has focused on its position within the Personal Products space and how investors are reassessing fragrance and beauty stocks after a weaker 1 year share price performance. This backdrop helps explain why some shareholders are now paying closer attention to whether the current price reflects underlying fundamentals or a shift in sentiment.
• On Simply Wall St, Interparfums currently has a valuation score of 4 out of 6, which suggests several checks screen as undervalued. The next sections will walk through those methods and also point to a more complete way to think about valuation that comes at the end of this article.

Approach 1: Interparfums Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model looks at the cash Interparfums is expected to generate in the future and then discounts those amounts back to what they are worth in dollar terms today. It is essentially a way of asking what that future stream of cash is worth in one figure.

Interparfums has last twelve month free cash flow of about $171.6 million. The current model uses a 2 Stage Free Cash Flow to Equity approach, with analyst inputs for the nearer years and Simply Wall St extrapolations thereafter. For example, projected free cash flow in 2028 is $235 million, and the ten year forecast period includes discounted cash flows that range from about $175.0 million in 2026 to $157.0 million in 2035.

When all those projected cash flows are discounted back, the estimated intrinsic value comes out at roughly $185.47 per share, compared with the recent share price of about $91.70. That implies an intrinsic discount of about 50.6%, which suggests that Interparfums is trading well below this DCF estimate.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Interparfums is undervalued by 50.6%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

Approach 2: Interparfums Price vs Earnings

For profitable companies, the P/E ratio is a useful shorthand for what investors are currently willing to pay for each dollar of earnings. It links the share price directly to the bottom line, which is usually more stable than sales or book value for established, income generating businesses.

What counts as a “normal” P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can support a higher multiple, while slower growth or higher risk usually justify a lower one.

Interparfums currently trades on a P/E of 17.47x, compared with the Personal Products industry average of 19.98x and a peer group average of 54.31x. Simply Wall St also calculates a proprietary “Fair Ratio” of 13.73x for Interparfums, which reflects factors such as its earnings growth profile, industry, profit margins, market cap and risk characteristics.

Because the Fair Ratio is tailored to the company’s own fundamentals rather than broad group averages, it can be a more targeted reference point than simple industry or peer comparisons. With the actual P/E above the 13.73x Fair Ratio, Interparfums currently screens as trading richer than this Fair Ratio benchmark.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies.

Upgrade Your Decision Making: Choose your Interparfums Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as your own story for Interparfums that connects what you believe about its brands, digital expansion, licenses and risks to a set of numbers for future revenue, earnings, margins and a Fair Value that can be compared with today’s share price.

On Simply Wall St’s Community page, Narratives let you set those assumptions in an accessible format, link them directly to a forecast and Fair Value, then see how that stacks up against the current price so you can judge whether the stock looks expensive or cheap on your terms rather than only on a single DCF or P/E screen.

Because Narratives update as new information such as earnings, guidance or news is added, your view can evolve automatically, and you can see, for example, how a more optimistic Interparfums Narrative that targets a Fair Value of US$125.0 differs from a more cautious view that points to US$85.0, with both sitting on either side of the US$108.2 consensus Fair Value.

For Interparfums, however, we’ll make it really easy for you with previews of two leading Interparfums Narratives:

On one side, you have an analyst consensus style view that sees room for upside if the asset light model, global rollout and digital focus keep supporting growth and margins. On the other side, a lower target highlights what could happen if launch timing, e commerce pressure and licensing complexity weigh on future returns more than the market currently prices in.

Use them as brackets for your own thinking, then decide where your expectations sit between these two Fair Values and the current share price of about US$91.70.

Fair Value: US$108.20

Implied discount to Fair Value vs last close: about 15.2% undervalued

Analyst revenue growth assumption: 5.72% a year

• Emphasis on expanding e commerce and digital marketing to widen reach and potentially support higher margin sales across channels such as Amazon and TikTok.
• View that a diversified set of prestige fragrance licenses and supply chain adjustments can support earnings stability while managing tariffs and logistics costs.
• Analysts anchor on a consensus Fair Value of US$108.20, with assumptions for revenue of about US$1.8b and earnings of US$201.0m by 2029 and a P/E of 21.3x, using a 7.4% discount rate.

Fair Value: US$85.00

Implied premium to Fair Value vs last close: about 7.9% overvalued

Bear case revenue growth assumption: 3.53% a year

• Focus on risks from clustered blockbuster launches after 2026, heavier use of discount friendly e commerce channels and a push into ultra luxury that could pressure margins if demand softens.
• Assumes that broader licensing expansion, higher marketing needs and possible category oversupply could keep a lid on earnings growth compared with current market expectations.
• Bear case Fair Value of US$85.00 is tied to revenue expectations of about US$1.7b and earnings of US$188.6m by 2029, with a P/E of 17.8x and a 7.4% discount rate.

If you want to see how your own expectations compare with these analyst driven Narratives and where they sit relative to the current share price, To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Interparfums on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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

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.