IFF
International Flavors & Fragrances Inc.
$90.68
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 21.5% above fair value
You pay
$90.68
Bear
$36.27
Fair
$74.65
Bull
$118.96
Bear
$36.27
-60.0%
10% stage 1 growth, 11% discount
Fair
$74.65
-17.7%
16% stage 1 growth, 11% discount
Bull
$118.96
+31.2%
21% stage 1 growth, 11% discount
Adjust Assumptions
16.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (16% base case)
Terminal Value % of EV
44%
Implied Market Multiple
40.7x
Market is pricing in (growth)
18.5%
vs 16.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (34 analysts)
$96.29
Divergence from AlphaVal
22%
Summary
Using a two-stage FCF DCF with 16% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $74.65 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions