CL Valuation

Colgate-Palmolive Co

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84.720

-0.35(-0.411%)1D

Overview
Forecast
Valuation
Earnings

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 22.37 is considered Undervalued compared with the five-year average of 24.65. The fair price of Colgate-Palmolive Co (CL) is between 91.93 to 101.42 according to relative valuation methord. Compared to the current price of 85.07 USD , Colgate-Palmolive Co is Undervalued By 7.46%.

Relative Value

Fair Zone

91.93-101.42

Current Price：85.07

7.46%

Undervalued

22.37

Trailing

Forward

14.89

EV/EBITDA

Colgate-Palmolive Co. (CL) has a current EV/EBITDA of 14.89. The 5-year average EV/EBITDA is 16.18. The thresholds are as follows: Strongly Undervalued below 14.43, Undervalued between 14.43 and 15.31, Fairly Valued between 17.05 and 15.31, Overvalued between 17.05 and 17.92, and Strongly Overvalued above 17.92. The current Forward EV/EBITDA of 14.89 falls within the Undervalued range.

16.90

EV/EBIT

Colgate-Palmolive Co. (CL) has a current EV/EBIT of 16.90. The 5-year average EV/EBIT is 18.46. The thresholds are as follows: Strongly Undervalued below 16.39, Undervalued between 16.39 and 17.43, Fairly Valued between 19.50 and 17.43, Overvalued between 19.50 and 20.53, and Strongly Overvalued above 20.53. The current Forward EV/EBIT of 16.90 falls within the Undervalued range.

3.29

Colgate-Palmolive Co. (CL) has a current PS of 3.29. The 5-year average PS is 3.64. The thresholds are as follows: Strongly Undervalued below 3.00, Undervalued between 3.00 and 3.32, Fairly Valued between 3.96 and 3.32, Overvalued between 3.96 and 4.28, and Strongly Overvalued above 4.28. The current Forward PS of 3.29 falls within the Undervalued range.

17.91

P/OCF

Colgate-Palmolive Co. (CL) has a current P/OCF of 17.91. The 5-year average P/OCF is 19.11. The thresholds are as follows: Strongly Undervalued below 16.33, Undervalued between 16.33 and 17.72, Fairly Valued between 20.50 and 17.72, Overvalued between 20.50 and 21.89, and Strongly Overvalued above 21.89. The current Forward P/OCF of 17.91 falls within the Historic Trend Line -Fairly Valued range.

20.38

P/FCF

Colgate-Palmolive Co. (CL) has a current P/FCF of 20.38. The 5-year average P/FCF is 22.91. The thresholds are as follows: Strongly Undervalued below 19.09, Undervalued between 19.09 and 21.00, Fairly Valued between 24.82 and 21.00, Overvalued between 24.82 and 26.73, and Strongly Overvalued above 26.73. The current Forward P/FCF of 20.38 falls within the Undervalued range.

Colgate-Palmolive Co (CL) has a current Price-to-Book (P/B) ratio of 97.94. Compared to its 3-year average P/B ratio of -1353.42 , the current P/B ratio is approximately -107.24% higher. Relative to its 5-year average P/B ratio of -737.28, the current P/B ratio is about -113.28% higher. Colgate-Palmolive Co (CL) has a Forward Free Cash Flow (FCF) yield of approximately 4.90%. Compared to its 3-year average FCF yield of 4.04%, the current FCF yield is approximately 21.39% lower. Relative to its 5-year average FCF yield of 4.15% , the current FCF yield is about 18.20% lower.

97.94

P/B

Median3y

-1353.42

Median5y

-737.28

4.90

FCF Yield

Median3y

4.04

Median5y

4.15

Competitors Valuation Multiple

The average P/S ratio for CL's competitors is 2.76, providing a benchmark for relative valuation. Colgate-Palmolive Co Corp (CL) exhibits a P/S ratio of 3.29, which is 19.27% above the industry average. Given its robust revenue growth of 1.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Estee Lauder Companies Inc

Church & Dwight Co Inc

3.58

-0.32%

22.53B

Performance Decomposition

Market capitalization of CL decreased by 20.12% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.06B to 5.11B.

The secondary factor is the Margin Expansion, contributed -0.20%to the performance.

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

1.03%

5.06B → 5.11B

Revenue Growth

-0.20%

15.16 → 15.13

Margin Expansion

-20.95%

30.23 → 23.89

P/E Change

-20.12%