Procter & Gamble Valuation

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

PG * (MX$3616) is trading above our estimate of [[fair value]] (MX$3443.08)

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

Valuation Score

0/6

Valuation Score 0/6

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 PG * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PG * (MX$3616) is trading above our estimate of fair value (MX$3443.08)

Significantly Below Fair Value: PG * is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PG *. This is calculated by dividing PG *'s market cap by their current earnings.
What is PG *'s PE Ratio?
PE Ratio	29.8x
Earnings	US$14.03b
Market Cap	US$417.76b

PG * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.3x
Enterprise Value/EBITDA	18.4x
PEG Ratio	3.5x

Price to Earnings Ratio vs Peers

How does PG *'s PE Ratio compare to its peers?

The above table shows the PE ratio for PG * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.3x
KIMBER A Kimberly-Clark de México S. A. B. de C. V	10.6x	3.3%	Mex$86.6b
CL Colgate-Palmolive	27.2x	6.7%	US$77.6b
KMB Kimberly-Clark	17.8x	2.2%	US$46.2b
RKT Reckitt Benckiser Group	21.9x	11.3%	UK£33.5b
PG * Procter & Gamble	29.8x	8.4%	Mex$417.8b

Price-To-Earnings vs Peers: PG * is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

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

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PG * is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the Global Household Products industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is PG *'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.

PG * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PG *'s Price-To-Earnings Fair Ratio for valuation analysis.

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 PG * forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	Mex$3,616.00	Mex$3,665.56 +1.4%	7.6%	Mex$4,245.31	Mex$2,904.69	n/a	26
Nov ’25	Mex$3,314.15	Mex$3,600.32 +8.6%	7.3%	Mex$4,034.50	Mex$2,884.67	n/a	25
Oct ’25	Mex$3,415.60	Mex$3,473.34 +1.7%	6.7%	Mex$3,937.60	Mex$2,815.38	n/a	26
Sep ’25	Mex$3,372.19	Mex$3,455.57 +2.5%	5.8%	Mex$3,748.38	Mex$2,836.08	n/a	25
Aug ’25	Mex$3,115.00	Mex$3,257.66 +4.6%	5.7%	Mex$3,547.93	Mex$2,684.41	n/a	24
Jul ’25	Mex$2,994.03	Mex$3,085.79 +3.1%	5.8%	Mex$3,359.87	Mex$2,569.31	n/a	24
Jun ’25	Mex$2,760.00	Mex$2,848.95 +3.2%	5.6%	Mex$3,050.50	Mex$2,383.72	n/a	23
May ’25	Mex$2,765.01	Mex$2,906.09 +5.1%	5.4%	Mex$3,114.66	Mex$2,433.86	n/a	24
Apr ’25	Mex$2,673.53	Mex$2,817.19 +5.4%	5.2%	Mex$2,998.62	Mex$2,348.92	n/a	25
Mar ’25	Mex$2,670.01	Mex$2,875.18 +7.7%	5.6%	Mex$3,076.94	Mex$2,358.99	n/a	24
Feb ’25	Mex$2,712.25	Mex$2,869.67 +5.8%	5.7%	Mex$3,054.25	Mex$2,367.90	n/a	24
Jan ’25	Mex$2,483.00	Mex$2,821.54 +13.6%	6.7%	Mex$3,038.72	Mex$2,369.17	n/a	24
Dec ’24	Mex$2,620.00	Mex$2,844.77 +8.6%	6.8%	Mex$3,064.51	Mex$2,389.28	n/a	24
Nov ’24	Mex$2,669.68	Mex$2,971.33 +11.3%	6.8%	Mex$3,215.05	Mex$2,470.32	Mex$3,314.15	23
Oct ’24	Mex$2,528.52	Mex$2,931.00 +15.9%	6.3%	Mex$3,138.17	Mex$2,384.31	Mex$3,415.60	23
Sep ’24	Mex$2,605.00	Mex$2,794.48 +7.3%	6.4%	Mex$3,000.02	Mex$2,279.35	Mex$3,372.19	22
Aug ’24	Mex$2,610.00	Mex$2,787.78 +6.8%	7.3%	Mex$2,997.25	Mex$2,160.03	Mex$3,115.00	21
Jul ’24	Mex$2,556.00	Mex$2,812.82 +10.0%	7.2%	Mex$3,028.82	Mex$2,207.45	Mex$2,994.03	22
Jun ’24	Mex$2,575.49	Mex$2,932.18 +13.8%	7.2%	Mex$3,195.13	Mex$2,289.84	Mex$2,760.00	23
May ’24	Mex$2,817.09	Mex$2,963.47 +5.2%	7.8%	Mex$3,257.55	Mex$2,280.29	Mex$2,765.01	24
Apr ’24	Mex$2,676.83	Mex$2,904.56 +8.5%	7.3%	Mex$3,199.94	Mex$2,371.72	Mex$2,673.53	26
Mar ’24	Mex$2,488.02	Mex$2,794.11 +12.3%	7.4%	Mex$3,077.49	Mex$2,280.97	Mex$2,670.01	26
Feb ’24	Mex$2,656.01	Mex$2,890.46 +8.8%	7.3%	Mex$3,190.76	Mex$2,364.92	Mex$2,712.25	26
Jan ’24	Mex$2,958.00	Mex$2,949.37 -0.3%	9.0%	Mex$3,360.71	Mex$2,411.81	Mex$2,483.00	26
Dec ’23	Mex$2,860.00	Mex$2,864.50 +0.2%	8.6%	Mex$3,301.01	Mex$2,368.96	Mex$2,620.00	25
Nov ’23	Mex$2,604.03	Mex$2,918.31 +12.1%	7.7%	Mex$3,390.29	Mex$2,433.03	Mex$2,669.68	24

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