CL PE Ratio & Valuation,Is CL Overvalued

CL Relative Valuation

CL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CL is overvalued; if below, it's undervalued.

Historical Valuation

Colgate-Palmolive Co (CL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.63 is considered Undervalued compared with the five-year average of 24.29. The fair price of Colgate-Palmolive Co (CL) is between 87.60 to 98.25 according to relative valuation methord. Compared to the current price of 77.72 USD , Colgate-Palmolive Co is Undervalued By 11.27%.

Relative Value

Fair Zone

87.60-98.25

Current Price：77.72

11.27%

Undervalued

20.63

13.89

EV/EBITDA

Colgate-Palmolive Co. (CL) has a current EV/EBITDA of 13.89. The 5-year average EV/EBITDA is 15.97. The thresholds are as follows: Strongly Undervalued below 14.00, Undervalued between 14.00 and 14.99, Fairly Valued between 16.96 and 14.99, Overvalued between 16.96 and 17.94, and Strongly Overvalued above 17.94. The current Forward EV/EBITDA of 13.89 falls within the Strongly Undervalued range.

15.81

EV/EBIT

Colgate-Palmolive Co. (CL) has a current EV/EBIT of 15.81. The 5-year average EV/EBIT is 18.23. The thresholds are as follows: Strongly Undervalued below 15.89, Undervalued between 15.89 and 17.06, Fairly Valued between 19.40 and 17.06, Overvalued between 19.40 and 20.57, and Strongly Overvalued above 20.57. The current Forward EV/EBIT of 15.81 falls within the Strongly Undervalued range.

3.01

Colgate-Palmolive Co. (CL) has a current PS of 3.01. The 5-year average PS is 3.55. The thresholds are as follows: Strongly Undervalued below 2.94, Undervalued between 2.94 and 3.25, Fairly Valued between 3.86 and 3.25, Overvalued between 3.86 and 4.17, and Strongly Overvalued above 4.17. The current Forward PS of 3.01 falls within the Undervalued range.

16.60

P/OCF

Colgate-Palmolive Co. (CL) has a current P/OCF of 16.60. The 5-year average P/OCF is 19.06. The thresholds are as follows: Strongly Undervalued below 16.24, Undervalued between 16.24 and 17.65, Fairly Valued between 20.47 and 17.65, Overvalued between 20.47 and 21.88, and Strongly Overvalued above 21.88. The current Forward P/OCF of 16.60 falls within the Undervalued range.

18.79

P/FCF

Colgate-Palmolive Co. (CL) has a current P/FCF of 18.79. The 5-year average P/FCF is 22.84. The thresholds are as follows: Strongly Undervalued below 18.84, Undervalued between 18.84 and 20.84, Fairly Valued between 24.83 and 20.84, Overvalued between 24.83 and 26.83, and Strongly Overvalued above 26.83. The current Forward P/FCF of 18.79 falls within the Strongly Undervalued range.

Colgate-Palmolive Co (CL) has a current Price-to-Book (P/B) ratio of 73.16. Compared to its 3-year average P/B ratio of -1370.51 , the current P/B ratio is approximately -105.34% higher. Relative to its 5-year average P/B ratio of -745.43, the current P/B ratio is about -109.81% higher. Colgate-Palmolive Co (CL) has a Forward Free Cash Flow (FCF) yield of approximately 5.50%. Compared to its 3-year average FCF yield of 4.25%, the current FCF yield is approximately 29.42% lower. Relative to its 5-year average FCF yield of 4.18% , the current FCF yield is about 31.51% lower.

73.16

P/B

Median3y

-1370.51

Median5y

-745.43

5.50

FCF Yield

Median3y

4.25

Median5y

4.18

Competitors Valuation Multiple

The average P/S ratio for CL's competitors is 2.48, providing a benchmark for relative valuation. Colgate-Palmolive Co Corp (CL) exhibits a P/S ratio of 3.01, which is 21.13% above the industry average. Given its robust revenue growth of 1.95%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CL decreased by 10.08% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.03B to 5.13B.

The secondary factor is the Margin Expansion, contributed -3.18%to the performance.

Overall, the performance of CL in the past 1 year is driven by Revenue Growth. Which is more sustainable.

1.95%

5.03B → 5.13B

Revenue Growth

-3.18%

15.42 → 14.93

Margin Expansion

-8.85%

23.87 → 21.76

P/E Change

-10.08%

85.73 → 77.09

Mkt Cap Growth

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Frequently Asked Questions

Is Colgate-Palmolive Co (CL) currently overvalued or undervalued?

What is Colgate-Palmolive Co (CL) fair value?

CL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Colgate-Palmolive Co (CL) is between 87.60 to 98.25 according to relative valuation methord.

How does CL's valuation metrics compare to the industry average?

What is the current P/B ratio for Colgate-Palmolive Co (CL) as of Jan 08 2026?

As of Jan 08 2026, Colgate-Palmolive Co (CL) has a P/B ratio of 73.16. This indicates that the market values CL at 73.16 times its book value.

What is the current FCF Yield for Colgate-Palmolive Co (CL) as of Jan 08 2026?

As of Jan 08 2026, Colgate-Palmolive Co (CL) has a FCF Yield of 5.50%. This means that for every dollar of Colgate-Palmolive Co’s market capitalization, the company generates 5.50 cents in free cash flow.

What is the current Forward P/E ratio for Colgate-Palmolive Co (CL) as of Jan 08 2026?

As of Jan 08 2026, Colgate-Palmolive Co (CL) has a Forward P/E ratio of 20.63. This means the market is willing to pay $20.63 for every dollar of Colgate-Palmolive Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Colgate-Palmolive Co (CL) as of Jan 08 2026?

As of Jan 08 2026, Colgate-Palmolive Co (CL) has a Forward P/S ratio of 3.01. This means the market is valuing CL at $3.01 for every dollar of expected revenue over the next 12 months.

CL Valuation