TacticScaleWhat International Flavors & Fragrances Does & How It Makes Money (IFF)
Updated October 2026 · reflects International Flavors & Fragrances's latest reported financials
Maker of flavors, fragrances, food ingredients and biotech ingredients. IFF sells flavor, fragrance, food ingredient and bioscience products to consumer goods, food, beverage, personal care and animal nutrition manufacturers, which build them into their own products.
How International Flavors & Fragrances makes money
IFF sells flavor, fragrance, food ingredient and bioscience products to consumer goods, food, beverage, personal care and animal nutrition manufacturers, which build them into their own products.
What International Flavors & Fragrances does
International Flavors & Fragrances (IFF), founded in 1909 and based in New York, supplies the ingredients behind how consumer products taste, smell and perform. It has four segments. Taste makes flavors for savory foods, beverages, sweets and dairy. Food Ingredients offers plant-based and specialty ingredients, natural preservatives, soy and pea proteins, emulsifiers and sweeteners. Health & Biosciences provides enzymes, food cultures and probiotics for food, home and personal care, animal nutrition and grain processing. Scent makes fragrance compounds and ingredients. IFF sells mainly to other businesses. Its ingredients go into branded food, beverage, personal care and household products sold in the United States and internationally, so demand follows global consumer staples spending.
Products & services
- Flavors for beverages, savory, sweets and dairy
- Fragrance compounds and fragrance ingredients
- Enzymes, food cultures and probiotics
- Natural antioxidants and anti-microbial preservatives
- Soy and pea protein formulations, emulsifiers and sweeteners
- Spices, seasonings and marinades
What is International Flavors & Fragrances worth?
On an owner-earnings DCF, International Flavors & Fragrances's most-likely value is about $30 versus a recent price near $85 (65% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $85 is above even the optimistic Bull case ($41) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 10.5× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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