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

As of 6 May 2025, the valuation grade for International Flavors & Fragrances, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, with a P/E ratio of 25, significantly higher than its peers like McCormick & Co., Inc. at 24.07 and The Hershey Co. at 26.49. Additionally, the EV to EBITDA ratio stands at 13.43, which is more favorable than the industry average but still suggests potential overvaluation when compared to Kellanova's 17.71.
The PEG ratio is notably low at 0.14, which typically indicates undervaluation; however, the overall context of the company's performance and the recent stock returns suggest otherwise. Over the past year, the stock has declined by 38.38%, while the S&P 500 has gained 17.14%, reinforcing the notion that the stock is struggling relative to broader market performance.