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A Look at Interparfums (IPAR) Valuation Following Cautious 2026 Outlook and License Expiration Challenges

Simply Wall St·11/22/2025 14:18:26
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Interparfums (IPAR) has just released its 2026 financial outlook, predicting only slight growth in net sales and a drop in earnings per share. The cautious guidance comes as the company deals with the expiration of its Boucheron license, faces global market headwinds, and increases spending on new fragrance brands. Investors are weighing the near-term challenges against management’s strategy to strengthen future performance through portfolio expansion and new distribution efforts.

See our latest analysis for Interparfums.

It’s been a rocky stretch for Interparfums, with the stock down sharply following cautious 2026 guidance and a recent earnings report that missed gross margin estimates. The share price has dropped 18.6% over the past month, contributing to a year-to-date share price return of -37.4% and a total shareholder return of -38.3% over the last year. Despite this downturn and some near-term market skepticism, Interparfums’ solid five-year total shareholder return of 61% suggests the company has previously rewarded patient investors. Current momentum is fading and risks remain around portfolio transitions and market headwinds.

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With shares trading well below analyst price targets after a steep selloff, investors now face a key question: is Interparfums undervalued given its longer-term potential, or is the market already pricing in future growth plans?

Most Popular Narrative: 41% Undervalued

Interparfums’ most widely tracked fair value estimate stands far above the latest close, suggesting the stock’s current price leaves room for long-term upside based on growth and margin potential.

Ongoing portfolio expansion with prestigious fragrance licenses (e.g., recent additions like Longchamp and growth with Lacoste and Solférino) enhances brand diversity and secures access to rising demand for premium and experiential luxury products. This supports future top-line growth and earnings stability.

Read the complete narrative.

Want to see the powerful numbers that fuel this premium valuation? This narrative rests on forecasts usually reserved for category leaders and pricing power the market may not expect. Uncover the assumptions that could shape the next move.

Result: Fair Value of $136.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could shift quickly if major fragrance licenses are lost or if changing consumer tastes undermine growth projections in key markets.

Find out about the key risks to this Interparfums narrative.

Build Your Own Interparfums Narrative

If this perspective doesn’t fit your view or you want to dive deeper into the details, you can craft your own narrative from the data in just a few minutes with Do it your way.

A great starting point for your Interparfums research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.