Nobody's really addressed the "best practice" part of this yet, so I'll jump in.
Yes, you should definitely throw an exception in your code when something goes wrong, and you should do it as early as possible (so you limit the code that needs to be debugged to work out what's causing it).
Code that does stuff like return undef
to signify failure isn't particularly reliable, simply because people will tend to use it without checking for the undef returnvalue - meaning that a variable they assume has something meaningful in it actually may not. This leads to complicated, hard to debug problems, and even unexpected problems cropping up later in previously-working code.
A more solid approach is to write your code so that it dies if something goes wrong, and then only if you need to recover from that failure, wrap the any calls to it in eval{ .. }
(or, better, try { .. } catch { .. }
from Try::Tiny, as has been mentioned). In most cases, there won't be anything meaningful that the calling code can do to recover, so calling code remains simple in the common case, and you can just assume you'll get a useful value back. If something does go wrong, then you'll get an error message from the actual part of the code that failed, rather than silently getting an undef. If your calling code can do something to recover failures, then it can arrange to catch exceptions and do whatever it needs to.
Something that's worth reading about is Exception classes, which are a structured way to send extra information to calling code, as well as allow it to pick which exceptions it wants to catch and which it can't handle. You probably won't want to use them everywhere in your code, but they're a useful technique when you have something complicated that can fail in equally complicated ways, and you want to arrange for failures to be recoverable.