Inter Parfums manufactures, markets, and distributes a range of fragrances and fragrance related products worldwide. The company was founded in 1985 and is based in New York, New York.
IPAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for IPAR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Inter Parfums Inc ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Inter Parfums Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 31.35 -- which is good for besting 89.43% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 9.71% of the free cash flow producing stocks we're observing.
IPAR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 53.35% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SYY, UVV, CL, PG, and CLX can be thought of as valuation peers to IPAR, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the first quarter ended March 31, 2020. The average dollar/euro ratio for the current first quarter was 1.10 compared to 1.14 in the first quarter of 2019.