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Should You Buy International Flavors & Fragrances Inc (IFF) Stock Wednesday?

Wednesday, October 05, 2022 01:35 PM | InvestorsObserver Analysts

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Should You Buy International Flavors & Fragrances Inc (IFF) Stock Wednesday?

International Flavors & Fragrances Inc (IFF) receives a strong valuation score of 61 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. IFF holds a better value than 61% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 61
IFF gets a 61 Valuation Rank today. Find out what this means to you and get the rest of the rankings on IFF!

Metrics Analysis

IFF has a trailing twelve month Price to Earnings (PE) ratio of 38.2 which places it above the histroical average of roughly 15. IFF is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. IFF's trailing-12-month earnings per share (EPS) of 2.50 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
IFF has a 12 month forward PE to Growth (PEG) ratio of 1.71. Markets are overvaluing IFF in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.5's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

IFF's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. IFF's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on International Flavors & Fragrances Inc (IFF) stock.

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