IPAR
Inter Parfums, Inc.
$92.63
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 31.8% below fair value
You pay
$92.63
Bear
$97.58
Fair
$135.84
Bull
$174.71
Bear
$97.58
+5.3%
7% stage 1 growth, 11% discount
Fair
$135.84
+46.7%
11% stage 1 growth, 11% discount
Bull
$174.71
+88.6%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
40%
Implied Market Multiple
15.2x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $112.00 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $135.84 per share.
Warnings
Wall Street's average price target is $112.00 (from 19 analysts). Our estimate is 28% above the consensus -- consider that gap carefully.
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