Sunday, February 15

A Look At International Flavors & Fragrances (IFF) Valuation After Its Recent Share Price Rebound


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International Flavors & Fragrances (IFF) has drawn fresh attention after a strong recent run, with the stock up about 18% over the past week and 16% over the past month.

For investors, those moves sit against a mixed backdrop, including a small negative 1 year total return, weaker 3 year and 5 year records, and a current share price of $83.

See our latest analysis for International Flavors & Fragrances.

The recent 27.44% 3 month share price return and 22.00% year to date share price return contrast with a 0.75% decline in 1 year total shareholder return, hinting that momentum has picked up only in the shorter term as investors reassess growth prospects and risks around International Flavors & Fragrances at its current US$83 share price.

If this kind of rebound has your attention and you are curious what else might be moving, now could be a good time to check out 23 top founder-led companies as potential new ideas.

With the shares now at US$83 and only a modest discount to some analyst estimates, the key question is whether recent momentum still leaves room for upside, or if the market is already pricing in future growth.

At a last close of $83, International Flavors & Fragrances is sitting just above the most followed fair value estimate of about $82.37, which is built on detailed revenue, margin and discount rate assumptions.

The analyst price target for International Flavors & Fragrances edges higher to about US$82.37 from roughly US$81.49 as analysts weigh slightly lower modeled revenue growth against a higher profit margin profile, a modestly reduced discount rate, and a lower assumed future P/E, in line with a recent series of Street target increases.

Recent Street research on International Flavors & Fragrances shows a cluster of price target revisions, with several bullish analysts lifting their targets and a smaller group trimming assumptions. Together, these updates focus on how execution, valuation, and medium term growth expectations might line up.

Read the complete narrative.

Want to see what sits behind that fair value of roughly $82? The narrative leans on a sharp swing from losses to profits, tighter margins, and a future earnings multiple usually reserved for higher growth names. Curious which exact revenue and earnings paths have to play out to justify that price range? The full story connects all those moving parts.

Result: Fair Value of $82.37 (OVERVALUED)

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

However, there are still watchpoints, including softness in key markets like North America and China and ongoing pressure in commoditised fragrance ingredients that could limit the recovery story.

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

While the popular narrative pegs International Flavors & Fragrances at about 1% over fair value, our DCF model points the other way, with an estimate of $88.31 versus the current $83. That gap suggests the market might be underestimating future cash flows, or the DCF is leaning too generous. Which side do you think has the better handle on the next few years?

Look into how the SWS DCF model arrives at its fair value.

IFF Discounted Cash Flow as at Feb 2026
IFF Discounted Cash Flow as at Feb 2026

If you see the numbers differently or want to stress test your own assumptions against the current market price, you can build a custom thesis in just a few minutes and 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.

If International Flavors & Fragrances has sparked your interest, do not stop here. Your next strong idea could already be on our radar.

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.

Companies discussed in this article include IFF.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com



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