As of June 19, 2025, International Flavors & Fragrances Inc has a Discounted Cash Flow (DCF) derived fair value of $124.20 per share. With the current market price at $74.89, this represents a potential upside of 65.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $91.69 |
| DCF Fair Value (10-year) | $124.20 |
| Potential Upside (5-year) | 22.4% |
| Potential Upside (10-year) | 65.8% |
| Discount Rate (WACC) | 6.4% - 8.4% |
Revenue is projected to grow from $11484 million in 12-2024 to $15260 million by 12-2034, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 11484 | 0% |
| 12-2025 | 11262 | -2% |
| 12-2026 | 12028 | 7% |
| 12-2027 | 12342 | 3% |
| 12-2028 | 12887 | 4% |
| 12-2029 | 13145 | 2% |
| 12-2030 | 13807 | 5% |
| 12-2031 | 14210 | 3% |
| 12-2032 | 14495 | 2% |
| 12-2033 | 14961 | 3% |
| 12-2034 | 15260 | 2% |
Net profit margin is expected to improve from 2% in 12-2024 to 17% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 247 | 2% |
| 12-2025 | 540 | 5% |
| 12-2026 | 889 | 7% |
| 12-2027 | 1217 | 10% |
| 12-2028 | 1573 | 12% |
| 12-2029 | 1897 | 14% |
| 12-2030 | 2051 | 15% |
| 12-2031 | 2170 | 15% |
| 12-2032 | 2274 | 16% |
| 12-2033 | 2408 | 16% |
| 12-2034 | 2518 | 17% |
with a 5-year average of $413 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 464 |
| 12-2026 | 479 |
| 12-2027 | 475 |
| 12-2028 | 476 |
| 12-2029 | 486 |
| 12-2030 | 506 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 53 |
| Days Inventory | 120 |
| Days Payables | 64 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 1103 | 70 | 333 | 175 | 525 |
| 2026 | 1921 | 153 | 474 | 2 | 1292 |
| 2027 | 2311 | 210 | 486 | (5) | 1620 |
| 2028 | 2748 | 271 | 508 | 130 | 1838 |
| 2029 | 3146 | 327 | 518 | (22) | 2323 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 91.69 | 22.4% |
| 10-Year DCF (Growth) | 124.20 | 65.8% |
| 5-Year DCF (EBITDA) | 77.68 | 3.7% |
| 10-Year DCF (EBITDA) | 107.48 | 43.5% |
Is International Flavors & Fragrances Inc (IFF) a buy or a sell? International Flavors & Fragrances Inc is definitely a buy. Based on our DCF analysis, International Flavors & Fragrances Inc (IFF) appears to be significantly undervalued with upside potential of 65.8%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $74.89.