The Procter & Gamble Company

DB:PRG Stock Report

Market Cap: €396.3b

Procter & Gamble Valuation

Is PRG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PRG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRG (€169.78) is trading below our estimate of fair value (€232.42)

Significantly Below Fair Value: PRG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PRG?

Key metric: As PRG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PRG. This is calculated by dividing PRG's market cap by their current earnings.
What is PRG's PE Ratio?
PE Ratio29.6x
EarningsUS$14.03b
Market CapUS$415.15b

Price to Earnings Ratio vs Peers

How does PRG's PE Ratio compare to its peers?

The above table shows the PE ratio for PRG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.3x
HEN3 Henkel KGaA
18.6x6.5%€30.9b
BEI Beiersdorf
37.5x12.7%€27.7b
CL Colgate-Palmolive
27.2x6.7%US$77.6b
KMB Kimberly-Clark
17.8x2.2%US$46.2b
PRG Procter & Gamble
29.6x8.4%€415.1b

Price-To-Earnings vs Peers: PRG is expensive based on its Price-To-Earnings Ratio (29.6x) compared to the peer average (25.2x).

Price to Earnings Ratio vs Industry

How does PRG's PE Ratio compare vs other companies in the Global Household Products Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PRG 29.6xIndustry Avg. 17.8xNo. of Companies14PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRG is expensive based on its Price-To-Earnings Ratio (29.6x) compared to the Global Household Products industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is PRG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PRG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.6x
Fair PE Ratio37.1x

Price-To-Earnings vs Fair Ratio: PRG is good value based on its Price-To-Earnings Ratio (29.6x) compared to the estimated Fair Price-To-Earnings Ratio (37.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PRG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€169.78
€172.25
+1.5%
7.6%€199.49€136.49n/a26
Nov ’25€152.50
€164.34
+7.8%
7.3%€184.16€131.67n/a25
Oct ’25€156.36
€158.44
+1.3%
6.7%€179.62€128.43n/a26
Sep ’25€155.00
€157.32
+1.5%
5.8%€170.65€129.11n/a25
Aug ’25€153.32
€160.82
+4.9%
5.7%€175.15€132.52n/a24
Jul ’25€152.06
€159.96
+5.2%
5.8%€174.17€133.19n/a24
Jun ’25€150.26
€157.94
+5.1%
5.6%€169.11€132.15n/a23
May ’25€152.14
€159.25
+4.7%
5.4%€170.68€133.38n/a24
Apr ’25€150.28
€156.14
+3.9%
5.2%€166.19€130.19n/a25
Mar ’25€146.62
€155.01
+5.7%
5.6%€165.89€127.18n/a24
Feb ’25€146.24
€154.25
+5.5%
5.7%€164.17€127.28n/a24
Jan ’25€131.42
€150.54
+14.6%
6.7%€162.13€126.41n/a24
Dec ’24€140.36
€149.75
+6.7%
6.8%€161.32€125.77n/a24
Nov ’24€142.44
€153.41
+7.7%
6.8%€165.99€127.54€152.5023
Oct ’24€137.74
€158.19
+14.8%
6.3%€169.37€128.68€156.3623
Sep ’24€143.50
€152.68
+6.4%
6.4%€163.91€124.54€155.0022
Aug ’24€142.50
€151.41
+6.3%
7.3%€162.78€117.31€153.3221
Jul ’24€137.76
€151.24
+9.8%
7.2%€162.86€118.69€152.0622
Jun ’24€133.46
€152.90
+14.6%
7.2%€166.61€119.40€150.2623
May ’24€142.02
€149.27
+5.1%
7.8%€164.09€114.86€152.1424
Apr ’24€136.08
€143.94
+5.8%
7.3%€158.58€117.53€150.2826
Mar ’24€128.98
€144.76
+12.2%
7.4%€159.44€118.18€146.6226
Feb ’24€130.20
€141.97
+9.0%
7.3%€156.72€116.16€146.2426
Jan ’24€142.42
€140.51
-1.3%
9.0%€160.11€114.90€131.4226
Dec ’23€142.10
€143.17
+0.8%
8.6%€164.99€118.40€140.3625
Nov ’23€135.94
€145.15
+6.8%
7.7%€168.62€121.01€142.4424

Analyst Forecast: Target price is less than 20% higher than the current share price.

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