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If you are wondering whether Interparfums is attractively priced at around US$98.76, or if the recent run-up has already baked in the value, this article breaks down what the current share price could mean for you.
The stock has returned 9.8% over the last 7 days and 15.8% over the last 30 days. Its 1-year return shows a 27.8% decline and its 3-year return shows a 6.1% decline, alongside a 77.3% gain over 5 years. Taken together, this presents a mixed picture of how the market has treated the shares.
Recent coverage of Interparfums has focused on its position in the fragrance and beauty segment and on how investors are weighing brand strength against share price volatility. This helps explain why the stock has seen both shorter-term gains and longer-term pullbacks. Together, these themes frame the question of whether the current price reflects a cautious view of future prospects or simply a reset from earlier enthusiasm.
On our checks, Interparfums scores a 4 out of 6 valuation score, which suggests some signals of undervaluation that we will test using common valuation methods. We will then return to a more complete way of thinking about value at the end of the article.
Find out why Interparfums’s -27.8% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and then discounting those back to a present value.
For Interparfums, the model used is a 2 Stage Free Cash Flow to Equity approach, based on reported and projected Free Cash Flow in $. The latest twelve month Free Cash Flow is about $144.9 million. Analysts provide explicit forecasts out to 2027, and Simply Wall St extrapolates further to build a ten year view, which includes a projected Free Cash Flow of $405.6 million in 2035.
Bringing all those projected cash flows back to today results in an estimated intrinsic value of about $213.77 per share. Compared with a recent share price around $98.76, the DCF suggests the stock trades at a 53.8% discount to this estimate, which indicates that Interparfums appears undervalued on this model alone.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Interparfums is undervalued by 53.8%. Track this in your watchlist or portfolio, or discover 864 more undervalued stocks based on cash flows.
Story Continues
IPAR Discounted Cash Flow as at Jan 2026
For a profitable company like Interparfums, the P/E ratio is a useful way to see what buyers are currently willing to pay for each dollar of earnings. A higher or lower P/E often reflects how the market weighs the balance between growth potential and risk, so a company with stronger expected growth or perceived resilience can sometimes justify a higher “normal” or “fair” P/E.
Interparfums currently trades on a P/E of 19.25x. That sits below both the Personal Products industry average P/E of 22.71x and the peer group average of 26.90x, which suggests the market is valuing its earnings at a lower multiple than many comparable names.
Simply Wall St’s Fair Ratio for Interparfums is 13.31x. This is a proprietary estimate of what a reasonable P/E might be, given factors such as earnings growth profile, profit margins, industry, market capitalization and specific risks. Because it adjusts for these company level characteristics, the Fair Ratio can be more tailored than a simple comparison with broad industry or peer averages. On this measure, Interparfums’ current P/E of 19.25x stands above the 13.31x Fair Ratio, which points to the shares looking expensive on this metric.
Result: OVERVALUED
NasdaqGS:IPAR P/E Ratio as at Jan 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your story about a company linked directly to your numbers such as what you think fair value is, and what you expect for future revenue, earnings and margins.
A Narrative connects three things: how you see the business, what that view implies for a financial forecast, and what that forecast implies for a fair value that you can compare to today’s price.
On Simply Wall St, millions of investors use Narratives on the Community page as an easy, accessible tool to decide whether a stock looks interesting by lining up their Fair Value estimate against the current Price and seeing how that gap changes over time.
Narratives are updated automatically when new earnings, news or other data is available, so your Interparfums story can shift quickly. For example, one investor might focus on long term brand strength and set a higher fair value, while another might focus on recent share price volatility and prefer a lower fair value instead.
Do you think there’s more to the story for Interparfums? Head over to our Community to see what others are saying!
NasdaqGS:IPAR 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include IPAR.
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