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:
We started the process of determining a valid price forecast for Inter Parfums Inc with a discounted cash flow analysis -- the results of which can be found in the table below. 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. As for the metrics that stood out in our discounted cash flow analysis of Inter Parfums Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 31.35; that's higher than 90.04% of US stocks in the Consumer Defensive sector that have positive free cash flow.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 9.82% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 53.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CAG, PG, SYY, CL, 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.