We’ve recently updated our valuation analysis.

Colgate-Palmolive Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CL 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/Revenue4.1x
Enterprise Value/EBITDA17.4x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.9x
KMB Kimberly-Clark
25.8x8.1%US$46.1b
CLX Clorox
45.7x20.5%US$18.5b
CHD Church & Dwight
27.2x5.5%US$20.1b
PG Procter & Gamble
24.8x5.0%US$353.7b
CL Colgate-Palmolive
33.7x9.3%US$64.9b

Price-To-Earnings vs Peers: CL is expensive based on its Price-To-Earnings Ratio (33.7x) compared to the peer average (30.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.9%
n/an/an/a

Price-To-Earnings vs Industry: CL is expensive based on its Price-To-Earnings Ratio (33.7x) compared to the Global Household Products industry average (27.2x)


Price to Earnings Ratio vs Fair Ratio

What is CL'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.

CL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.7x
Fair PE Ratio29x

Price-To-Earnings vs Fair Ratio: CL is expensive based on its Price-To-Earnings Ratio (33.7x) compared to the estimated Fair Price-To-Earnings Ratio (29x).


Share Price vs Fair Value

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

Below Fair Value: CL ($77.75) is trading below our estimate of fair value ($116.48)

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


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 CL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$77.75
US$80.15
+3.1%
5.6%US$85.00US$66.00n/a20
Nov ’23US$73.74
US$80.20
+8.8%
5.5%US$85.00US$66.00n/a20
Oct ’23US$70.25
US$82.11
+16.9%
7.0%US$91.00US$68.00n/a19
Sep ’23US$79.80
US$82.26
+3.1%
7.0%US$91.00US$68.00n/a19
Aug ’23US$81.10
US$82.21
+1.4%
7.2%US$91.00US$67.00n/a19
Jul ’23US$81.97
US$81.85
-0.1%
7.1%US$91.00US$71.00n/a20
Jun ’23US$78.20
US$81.76
+4.6%
7.0%US$91.00US$71.00n/a21
May ’23US$77.05
US$84.53
+9.7%
7.1%US$95.00US$71.00n/a21
Apr ’23US$76.42
US$86.14
+12.7%
7.1%US$95.00US$75.00n/a21
Mar ’23US$76.04
US$87.23
+14.7%
7.8%US$104.00US$73.00n/a21
Feb ’23US$81.92
US$86.95
+6.1%
8.1%US$104.00US$73.00n/a21
Jan ’23US$85.34
US$85.19
-0.2%
8.0%US$98.00US$73.00n/a21
Dec ’22US$75.39
US$84.90
+12.6%
7.8%US$98.00US$73.00US$77.7520
Nov ’22US$75.95
US$85.50
+12.6%
7.4%US$98.00US$73.00US$73.7420
Oct ’22US$75.58
US$87.11
+15.2%
7.8%US$98.00US$72.00US$70.2519
Sep ’22US$78.33
US$87.00
+11.1%
7.8%US$98.00US$72.00US$79.8019
Aug ’22US$79.50
US$87.07
+9.5%
8.3%US$99.00US$72.00US$81.1020
Jul ’22US$81.74
US$86.57
+5.9%
8.5%US$99.00US$72.00US$81.9720
Jun ’22US$82.48
US$85.67
+3.9%
8.2%US$99.00US$72.00US$78.2020
May ’22US$80.70
US$85.45
+5.9%
7.9%US$99.00US$72.00US$77.0521
Apr ’22US$78.55
US$85.62
+9.0%
7.8%US$98.00US$72.00US$76.4221
Mar ’22US$75.60
US$85.71
+13.4%
7.7%US$98.00US$71.00US$76.0421
Feb ’22US$78.52
US$86.00
+9.5%
7.6%US$98.00US$71.00US$81.9222
Jan ’22US$85.51
US$84.52
-1.2%
8.0%US$94.00US$70.00US$85.3421
Dec ’21US$86.26
US$84.00
-2.6%
7.9%US$91.00US$70.00US$75.3920

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


Discover undervalued companies