Is International Flavors & Fragrances, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for International Flavors & Fragrances, Inc. has moved from expensive to risky. The company appears to be overvalued, given its P/E ratio of 25, which is significantly higher than peers like The Hershey Co. at 21.66 and Kellanova at 25.60. Additionally, the EV to EBITDA ratio stands at 13.43, while Mondelez International, Inc. shows a much higher valuation with an EV to EBITDA of 23.92.
The PEG ratio of 0.14 indicates that the stock may not be priced appropriately relative to its growth potential, further supporting the overvaluation assessment. With a dividend yield of 2.00% and a ROE of 6.46%, the company’s returns have lagged behind broader market indices, as evidenced by its 1-year stock return of -23.15% compared to the S&P 500's 10.26%. Overall, the combination of high valuation ratios and poor relative performance suggests that International Flavors & Fragrances, Inc. is currently overvalued.