DCF Tool

IFF

International Flavors & Fragrances Inc. – All Other Basic Organic Chemical Manufacturing
IFF uses Uncommon Sense to create what the world needs. As a collective of unconventional thinkers and creators, the Company puts science and artistry to work to create unique and unexpected scents, tastes, experiences and ingredients for the products its world craves.
Analysis Results
Intrinsic Value $194.74
Latest Price $128.93
Relative Value 34% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.29 1.21
2023 1.54 1.36
2024 1.84 1.53
2025 2.21 1.72
2026 2.64 1.93
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 60.8 billion. This corresponds to a present value of 41.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.75 billion. Adding in the terminal value gives a total present value of 49.6 billion.

There are presently 255.0 million outstanding shares, so the intrinsic value per share is 194.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,987,000,000
Current Cash 711,000,000
Current Liabilities 3,633,000,000
Current Debt 637,000,000
Non-Cash Working Capital (NCWC) 3,280,000,000
Change in NCWC 2,136,202,000
EBIT 625,000,000
Tax Provision 75,000,000
Depreciation and Amortization 1,156,000,000
Capital Expenditure -397,000,000
Unlevered Free Cash Flow 3,387,786,745
Current Assets 3,059,799,000
Current Cash 649,541,000
Current Liabilities 1,903,726,000
Current Debt 637,266,000
Non-Cash Working Capital (NCWC) 1,143,798,000
Change in NCWC -26,622,000
EBIT 587,563,000
Tax Provision 73,999,000
Depreciation and Amortization 325,360,000
Capital Expenditure -191,794,000
Unlevered Free Cash Flow 595,997,867
Current Assets 2,942,544,000
Current Cash 606,823,000
Current Liabilities 1,552,190,000
Current Debt 386,889,000
Non-Cash Working Capital (NCWC) 1,170,420,000
Change in NCWC -56,874,000
EBIT 697,402,000
Tax Provision 97,184,000
Depreciation and Amortization 323,330,000
Capital Expenditure -242,048,000
Unlevered Free Cash Flow 600,227,664
Current Assets 2,941,860,000
Current Cash 634,897,000
Current Liabilities 1,128,311,000
Current Debt 48,642,000
Non-Cash Working Capital (NCWC) 1,227,294,000
Change in NCWC 460,598,000
EBIT 587,784,000
Tax Provision 107,976,000
Depreciation and Amortization 173,792,000
Capital Expenditure -173,420,000
Unlevered Free Cash Flow 907,010,676
Current Assets 1,896,544,000
Current Cash 368,046,000
Current Liabilities 768,768,000
Current Debt 6,966,000
Non-Cash Working Capital (NCWC) 766,696,000
Change in NCWC 121,455,000
EBIT 600,970,000
Tax Provision 241,380,000
Depreciation and Amortization 117,967,000
Capital Expenditure -128,973,000
Unlevered Free Cash Flow 441,307,298
Current Assets 1,609,014,000
Current Cash 323,992,000
Current Liabilities 898,297,000
Current Debt 258,516,000
Non-Cash Working Capital (NCWC) 645,241,000
Change in NCWC -18,876,000
EBIT 554,820,000
Tax Provision 118,686,000
Depreciation and Amortization 102,469,000
Capital Expenditure -126,412,000
Unlevered Free Cash Flow 386,266,363
Current Assets 1,455,884,000
Current Cash 181,988,000
Current Liabilities 742,128,000
Current Debt 132,349,000
Non-Cash Working Capital (NCWC) 664,117,000
Change in NCWC -56,619,000
EBIT 595,941,000
Tax Provision 119,854,000
Depreciation and Amortization 89,597,000
Capital Expenditure -101,030,000
Unlevered Free Cash Flow 395,398,218
Current Assets 1,710,027,000
Current Cash 478,573,000
Current Liabilities 518,808,000
Current Debt 8,090,000
Non-Cash Working Capital (NCWC) 720,736,000
Change in NCWC 33,555,000
EBIT 593,619,000
Tax Provision 134,518,000
Depreciation and Amortization 89,354,000
Capital Expenditure -143,182,000
Unlevered Free Cash Flow 427,911,447
Current Assets 1,652,903,000
Current Cash 405,505,000
Current Liabilities 560,366,000
Current Debt 149,000
Non-Cash Working Capital (NCWC) 687,181,000
Change in NCWC -88,295,000
EBIT 518,490,000
Tax Provision 131,666,000
Depreciation and Amortization 83,227,000
Capital Expenditure -134,157,000
Unlevered Free Cash Flow 238,568,179
Current Assets 1,572,559,000
Current Cash 324,422,000
Current Liabilities 622,732,000
Current Debt 150,071,000
Non-Cash Working Capital (NCWC) 775,476,000
Change in NCWC -5,587,000
EBIT 488,286,000
Tax Provision 116,919,000
Depreciation and Amortization 76,667,000
Capital Expenditure -126,140,000
Unlevered Free Cash Flow 304,475,482

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