The Procter & Gamble Company provides branded consumer packaged goods to consumers in the United States, Canada, Puerto Rico, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. More info.
The calculations below outline how an intrinsic value for
Procter & Gamble
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$10,767.70||$11,515.43||$11,735.00||$11,012.67||$10,334.80|
|Source||Analyst x9||Analyst x8||Analyst x5||Extrapolated @ (-6.16%)||Extrapolated @ (-6.16%)|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $10,335 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$160,666 = $43,720 + $116,946
Value = Total value / Shares Outstanding ($160,666 / 2,521)Discount to Share Price
Value per share:
Current discount (share price of $81.05): -27.18%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($203,797,939,593).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.538 = 0.484 (1 + (1- 40%) (18.52%))
Levered Beta used in calculation = 0.8
Mr. David S. Taylor has been the Chairman of the Board of The Procter & Gamble Company since July 1, 2016 and has been its Chief Executive Officer and President since November 1, 2015. Mr. Taylor served as Group President of Global Beauty, Grooming and Health Care at Procter & Gamble Co. until November 1, 2015. He served as Head of Over Health and Grooming at Procter & Gamble Co. since July 1, 2013. He served as the Group President of Global Home Care at The Procter & Gamble Company from 2007 to June 30, 2013 and served as its Group President of Global Health and Grooming since July 01, 2013 to July 2015. Mr. Taylor served as Group President of Global Home Care at Procter & Gamble Co. since 2007. He was responsible for P&G's Professional Business unit, which sells directly to large hotels, restaurants, airports, care homes, industrial facilities and retail chains. He served as vice-president - North America family care at The Procter & Gamble Company since 2003 until July 01, 2005. Mr. Taylor has been with P&G since 1980 in various roles. He served as President of Global Family Care of Procter & Gamble Co. from July 1, 2005 to 2007. He also served as Vice President of North America Family Care at Procter & Gamble Co. from 2003 to July 1, 2005. He has 25 years of experience, including more than five years outside the USA and assignments in Baby, Beauty and Family Care. His previous positions include: served as Production Manager at Greenville, NC since 1980; Department Manager at Greenville, NC since 1983; Operations Manager at Cheboygan, MI since 1985; Operations Manager at Albany, GA since 1986; Plant Manager at Mehoopany, PA since 1989; Assistant Brand Manager at Pampers, U.S. (Cincinnati) since 1992; Brand Manager at Pampers, U.S., (Cincinnati) since 1993; Marketing Director at Diaper Products, US, (Cincinnati) since 1996; General Manager of Hong Kong & China Hair Care, (Hong Kong/China) since 1998; General Manager at Greater China Hair Care and Tissues & Towel, (China) since 2000 and General Manager and Vice President of Greater China Hair Care & Anti-Counterfeiting (China) and Vice President-Western Europe Family Care since 2001. His Local And National Activities include: Since 2006, has been on Church of the Savior Methodist Church's Endowment Board. He served as an Independent Director of TRWAutomotive Holdings Corp. since November 17, 2010 until May 15, 2015. He serves as a Director at The Procter & Gamble Company. He has been Board of Directors at America's Second Harvest and since 2007, he has been Cincinnati Scholarship Foundation's Board of Trustees. From 1989 to 1991, he served as Board Member at Regional Development Commission - Mehoopany, PA; From 1992 to 1998 at Anderson Hills United Methodist Church; from 1998 to 2001 at Church of All Nations; From 1998 to 2001, Mr. Taylor served as Board Member at HKANA - Retail Association; From 2000 to 2001, he served as Vice Chairman at Quality Brand Protection Committee - China. He served as a Director of TRW Automotive Inc. Since 2006 until May 15, 2015. Mr. Taylor holds a BS in Electrical Engineering from Duke University in 1980.
Average tenure and age of the Procter & Gamble management team in years:
Average tenure and age of the Procter & Gamble board of directors in years:
After reading The Procter & Gamble Company's (NYSE:PG) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … For Procter & Gamble, its most recent earnings (trailing twelve month) is US$9.84B, which compared to the prior year's level, has grown by a fairly subdued 4.36%. … This shows that whatever uplift the industry is benefiting from, Procter & Gamble has not been able to gain as much as its average peer.What does this mean?Simply Wall St - – Full article
See our latest analysis for Procter & Gamble What Is A Dividend Rock Star? … More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future High Yield And Dependable The company's dividend yield stands at 3.45%, which is high for Household Products stocks. … Furthermore, EPS should increase to $4.21.Next Steps: With Procter & Gamble producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward.Simply Wall St - – Full article
Does Procter & Gamble tick all the boxes of a great dividend stock? … Check out our latest analysis for Procter & Gamble Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend payers? … Relative to peers, Procter & Gamble has a yield of 3.00%, which is high for Household Products stocks but still below the market's top dividend payers.Simply Wall St - – Full article
View our latest analysis for Procter & Gamble Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … In terms of its peers, Procter & Gamble generates a yield of 3.08%, which is high for household products stocks but still below the market's top dividend payers. … Taking into account the dividend metrics, Procter & Gamble ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.Simply Wall St - – Full article
Margin Calculation for PG Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 9.88 Billion ÷ 65.19 Billion = 15.16% Procter & Gamble's margin has expanded in the past five years, due to revenue decling at -4.61% on average, which was more than the average fall in net income of -2.30%, which suggests that earnings has represented a larger percentage of the top line due to the faster fall in revenue. … What does Procter & Gamble's margin expectation tell us about future earnings? … Based on future expectations, PG's profit margin will reverse its previous trend and start to expand, with 3.01% in expected annual revenue growth and a forecasted 6.93% in annual net income growth.Simply Wall St - – Full article
It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for PG Price per share = $91.88 Earnings per share = $3.85 ∴ Price-Earnings Ratio = $91.88 ÷ $3.85 = 23.9x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … PG’s P/E of 23.9x is lower than its industry peers (25.9x), which implies that each dollar of PG’s earnings is being undervalued by investors.Simply Wall St - – Full article
PG has a decent dividend yield of 3.10% and is distributing 70.60% of earnings as dividends. … The company has been a reliable payer too, not missing a payment during this time. . … ETN has a sizeable dividend yield of 3.18% and distributes 37.18% of its earnings to shareholders as dividends , with analysts expecting this ratio in three years to be 48.47%Simply Wall St - – Full article
Below, I will run you through a simple sense check to build perspective on how Procter & Gamble is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its household products industry peers. … I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For Procter & Gamble, the most recent twelve-month earnings is $9,884M, which compared to the prior year's figure, Given that these figures are relatively myopic, I have estimated an annualized five-year figure for PG's net income, which stands at $9,892M.Simply Wall St - – Full article
PG has a solid dividend yield of 3.17% and is currently distributing 70.60% of profits to shareholders. … NYSE:MRK Historical Dividend Yield Oct 29th 17 Eaton Corporation plc (NYSE:ETN) Eaton Corporation plc operates as a power management company worldwide. … NYSE:ETN Historical Dividend Yield Oct 29th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
The Procter & Gamble Company (NYSE:PG)’s sound earnings growth per share is expected to be a double-digit 29.58% over the next three years. … This indicates a relatively solid earnings per share growth rate of 29.58% over the next few years, which is an optimistic outlook in the near term. … NYSE:PG Past Future Earnings Oct 20th 17 Is the growth built on solid basis?Simply Wall St - – Full article
The Procter & Gamble Company provides branded consumer packaged goods to consumers in the United States, Canada, Puerto Rico, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company’s Beauty segment offers hair care products, including conditioners, shampoos, styling aids, and treatments; and skin and personal care products, such as antiperspirant and deodorant, personal cleansing, and skin care products. It markets its products under Head & Shoulders, Pantene, Rejoice, Olay, Old Spice, Safeguard, and SK-II brands. The company’s Grooming segment provides shave care products comprising female and male blades and razors, pre- and post-shave products, and other shave care products; and appliances that include electric razors and epilators under the Braun, Fusion, Gillette, Mach3, Prestobarba, and Venus brands. Its Health Care segment offers toothbrushes, toothpastes, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamin/mineral/supplement, and other personal health care products under the Crest, Oral-B, Prilosec, and Vicks brands. The company’s Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents; and air care, dish care, P&G professional, and surface care products under the Ariel, Downy, Gain, Tide, Cascade, Dawn, Febreze, Mr. Clean, and Swiffer brands. Its Baby, Feminine & Family Care segment offers baby wipes, diapers, and pants; adult incontinence and feminine care products; and paper towels, tissues, and toilet paper under the Luvs, Pampers, Always, Tampax, Bounty, and Charmin brands. The company sells its products through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores, and pharmacies. The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio.
|Name:||The Procter & Gamble Company|
The Procter & Gamble Company
One Procter & Gamble Plaza,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||PG||Common Stock||New York Stock Exchange||US||USD||02. Jan 1968|
|DB||PRG||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1968|
|XTRA||PRG||Common Stock||XETRA Trading Platform||DE||EUR||02. Jan 1968|
|LSE||0NOF||Common Stock||London Stock Exchange||GB||EUR||02. Jan 1968|
|SWX||PG||Common Stock||SIX Swiss Exchange||CH||CHF||02. Jan 1968|
|ENXTPA||PGP||Common Stock||Euronext Paris||FR||EUR||02. Jan 1968|
|WBAG||PG||Common Stock||Wiener Boerse AG||AT||EUR||02. Jan 1968|
|SNSE||PG||Common Stock||Santiago Stock Exchange||CL||USD||02. Jan 1968|
|BVC||PG||Common Stock||Bolsa de Valores de Colombia||CO||COP||02. Jan 1968|
|BMV||PG *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||02. Jan 1968|
|BVL||PG||Common Stock||Bolsa de Valores de Lima||PE||USD||02. Jan 1968|
|BOVESPA||PGCO34||BDR EACH REPR 1 COM SH||Bolsa de Valores de Sao Paulo||BR||BRL||03. May 2011|
|BASE||PG||CEDEAR EACH 5 REP 1 COM NPV||Buenos Aires Stock Exchange||AR||ARS||07. Mar 2000|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/23|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/06/30|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.