International Flavors & Fragrances Inc. (IFF) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$79.63
PE Ratio (TTM)
24.3x
Intrinsic Value
$75.26
-5.8% margin of safety
COMPETITIVE MOAT
↑Proprietary Fragrance Technology
IFF's SENSORA™ platform offers extended scent release, creating a unique product benefit. This innovation provides a competitive edge in the fragrance market.
↑Long-Standing Customer Relationships
Decades of collaboration with major consumer brands build deep trust and integration. Switching costs are high due to established product formulations and supply chains.
↑Global Scale and R&D Expertise
Extensive research and development capabilities, coupled with a worldwide manufacturing and distribution network, create significant barriers to entry. This allows for tailored solutions across diverse markets.
INVESTMENT RISKS
↓Integration Challenges Post-Merger
The integration of DuPont's Nutrition & Biosciences business may present ongoing operational and cultural challenges. Successful synergy realization is critical for future performance.
↓Raw Material Price Volatility
Fluctuations in the cost of key raw materials can impact profit margins. Supply chain disruptions or geopolitical events could exacerbate these risks.
↓Regulatory Scrutiny on Ingredients
Increasing global regulations on chemical ingredients used in consumer products could necessitate costly reformulation or product discontinuation. Compliance requires continuous monitoring and adaptation.
Base case
IFF base case PE valuation
At a current price of $79.63, the base case PE valuation puts IFF fair value near $75.26 per share. That figure assumes 4.2% yearly earnings growth, a target PE multiple of 24x, and a 10% discount rate.
Intrinsic Value
$75.26
Margin of safety
-5.8%
Expected annual return
-1.1%
Base case assumptions: 4.2% annual earnings growth, 24x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the IFF PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for International Flavors & Fragrances Inc. respond.
Open PE Calculator for IFFCompany Overview
International Flavors & Fragrances Inc. (IFF), through its various subsidiaries, operates as a global developer and purveyor of active cosmetic and natural health ingredients. These vital components are incorporated into a wide array of consumer goods distributed across significant markets such as Europe, Africa, the Middle East, Greater Asia, North America, and Latin America. The company's activities are organized into four principal divisions: 1. Nourish: This segment focuses on natural and plant-derived specialty food ingredients, offering items like flavor compounds, savory solutions, and inclusions. It also provides natural food protection solutions, including antioxidants and anti-microbials, for use in beverages, confectionery, and dairy items. 2. Scent: The Scent division creates fragrance compounds, encompassing luxurious fine fragrances (perfumes and colognes) and everyday consumer fragrances. It further supplies essential fragrance ingredients, both synthetic and natural, which are blended to formulate new scents. Additionally, this segment delivers cosmetic active ingredients, such as functional compounds, botanicals, and advanced delivery systems, designed to enhance customers' cosmetic and personal care product lines. 3. Health & Biosciences: This segment is dedicated to the research, development, and production of enzymes, food cultures, probiotics, and other specialized biological ingredients. 4. Pharma Solutions: This division is responsible for manufacturing and distributing cellulosic and seaweed-derived pharmaceutical excipients. IFF's diverse customer base primarily consists of manufacturers in sectors including perfumery, cosmetics, hair and personal care, soaps and detergents, cleaning products, dairy, meat and processed foods, beverages, snacks and savory items, sweet and baked goods, dietary supplements, infant and elderly nutrition, functional foods, and producers of pharmaceutical excipients and oral care products. Established in 1833, International Flavors & Fragrances Inc. is headquartered in New York, New York.
Financial Metrics — IFF PE Stock Valuation Data
PE Ratio (TTM)
24.3x
PEG Ratio
0.04
Earnings Yield
4.18%
ROE (TTM)
6.0%
Revenue/Share (TTM)
$42.14
Dividend Yield
2.01%
Debt/Equity
0.41x
Frequently Asked Questions
What is the PE ratio of IFF?
The trailing twelve-month PE ratio of IFF reflects how much investors pay per dollar of International Flavors & Fragrances Inc.'s earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.
Is IFF overvalued based on PE ratio?
IFF's PE of 24.3x combined with a PEG ratio of 0.04 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.
How do I value IFF stock using PE ratio?
To value International Flavors & Fragrances Inc. using PE: (1) Compare the current PE (24.3x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (0.04) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of IFF?
IFF's PEG ratio is 0.04, calculated by dividing the PE ratio (24.3x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for IFF stock valuation?
PE ratio gives a quick relative read — how IFF is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See IFF DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value IFF with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.