Colgate Palmolive Valuation
| CL Stock | USD 88.87 0.29 0.33% |
At this time, the firm appears to be fairly valued. Colgate Palmolive shows a prevailing Real Value of $87.42 per share. The current price of the firm is $88.87. Our model approximates the value of Colgate Palmolive from analyzing the firm fundamentals such as Current Valuation of 80.98 B, return on equity of 2.79, and Profit Margin of 0.12 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Colgate Palmolive's valuation include:
Price Book 115.8744 | Enterprise Value 81 B | Enterprise Value Ebitda 18.527 | Price Sales 3.6268 | Forward PE 24.5098 |
Fairly Valued
Today
Please note that Colgate Palmolive's price fluctuation is very steady at this time. Calculation of the real value of Colgate Palmolive is based on 3 months time horizon. Increasing Colgate Palmolive's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Colgate Palmolive is useful when determining the fair value of the Colgate stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Colgate Palmolive. Since Colgate Palmolive is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Colgate Stock. However, Colgate Palmolive's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 88.87 | Real 87.42 | Target 81.35 | Hype 88.58 | Naive 90.23 |
The real value of Colgate Stock, also known as its intrinsic value, is the underlying worth of Colgate Palmolive Company, which is reflected in its stock price. It is based on Colgate Palmolive's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Colgate Palmolive's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Colgate Palmolive's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Colgate Palmolive helps investors to forecast how Colgate stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Colgate Palmolive more accurately as focusing exclusively on Colgate Palmolive's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Colgate Palmolive's intrinsic value based on its ongoing forecasts of Colgate Palmolive's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Colgate Palmolive's closest peers. When choosing an evaluation method for Colgate Palmolive, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Colgate Palmolive Investments |
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Colgate Valuation Trend
Knowing Colgate Palmolive's actual value is paramount for traders to make sound investment determinations. Colgate Palmolive's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Colgate Palmolive's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Colgate Palmolive's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Colgate Market Cap
Colgate Palmolive is rated fourth in market capitalization category among related companies. Market capitalization of Consumer Staples industry is currently estimated at about 768.68 Billion. Colgate Palmolive holds roughly 72.81 Billion in market capitalization claiming about 9% of stocks in Consumer Staples industry.Colgate Palmolive Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Colgate Palmolive's current stock value. Our valuation model uses many indicators to compare Colgate Palmolive value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Colgate Palmolive competition to find correlations between indicators driving Colgate Palmolive's intrinsic value. More Info.Colgate Palmolive is rated below average in price to earning category among related companies. It is rated third in price to book category among related companies fabricating about 4.74 of Price To Book per Price To Earning. Price To Book Ratio is expected to rise to 113.71 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Colgate Palmolive by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Colgate Palmolive's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Colgate Palmolive's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Colgate Palmolive's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Colgate Palmolive and how it compares across the competition.
About Colgate Palmolive Valuation
The stock valuation mechanism determines the current worth of Colgate Palmolive on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Colgate Palmolive. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Colgate Palmolive based exclusively on its fundamental and basic technical indicators. By analyzing Colgate Palmolive's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Colgate Palmolive's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Colgate Palmolive. We calculate exposure to Colgate Palmolive's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Colgate Palmolive's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 11.3 B | 7.2 B | |
| Pretax Profit Margin | 0.17 | 0.13 | |
| Operating Profit Margin | 0.21 | 0.14 | |
| Net Profit Margin | 0.12 | 0.08 | |
| Gross Profit Margin | 0.58 | 0.43 |
Colgate Palmolive Quarterly Retained Earnings |
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8 Steps to conduct Colgate Palmolive's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Colgate Palmolive's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Colgate Palmolive's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Colgate Palmolive's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Colgate Palmolive's revenue streams: Identify Colgate Palmolive's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Colgate Palmolive's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Colgate Palmolive's growth potential: Evaluate Colgate Palmolive's management, business model, and growth potential.
- Determine Colgate Palmolive's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Colgate Palmolive's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Colgate Palmolive represents a small ownership stake in the entity. As a stockholder of Colgate, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Colgate Palmolive Dividends Analysis For Valuation
The value of Dividends Paid is estimated to slide to about 929.4 M. The value of Dividend Yield is estimated to slide to 0.02. At this time, Colgate Palmolive's Retained Earnings are quite stable compared to the past year. Earnings Yield is expected to rise to 0.05 this year, although the value of Retained Earnings Total Equity will most likely fall to about 20 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.6 B | 929.4 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.69 | 0.48 | |
| Dividend Paid And Capex Coverage Ratio | 4.28 | 4.22 |
There are various types of dividends Colgate Palmolive can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Colgate shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Colgate Palmolive directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Colgate pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Colgate Palmolive by the value of the dividends paid out.
Colgate Palmolive Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Colgate Palmolive does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 829.2 M | |
| Quarterly Earnings Growth Y O Y | 144.537 | |
| Forward Price Earnings | 24.5098 |
Colgate Palmolive Current Valuation Indicators
Valuation refers to the process of determining the present value of Colgate Palmolive and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Colgate we look at many different elements of the entity such as Colgate's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Colgate Palmolive's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Colgate Palmolive's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Colgate Palmolive, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Colgate Palmolive's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Colgate Palmolive's worth.When determining whether Colgate Palmolive is a strong investment it is important to analyze Colgate Palmolive's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Colgate Palmolive's future performance. For an informed investment choice regarding Colgate Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Colgate Palmolive. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Colgate Stock please use our How to buy in Colgate Stock guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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When running Colgate Palmolive's price analysis, check to measure Colgate Palmolive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Colgate Palmolive is operating at the current time. Most of Colgate Palmolive's value examination focuses on studying past and present price action to predict the probability of Colgate Palmolive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Colgate Palmolive's price. Additionally, you may evaluate how the addition of Colgate Palmolive to your portfolios can decrease your overall portfolio volatility.
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Is Colgate Palmolive's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Colgate Palmolive. If investors know Colgate will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Colgate Palmolive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 144.537 | Dividend Share 1.91 | Earnings Share 2.77 | Revenue Per Share 23.516 | Quarterly Revenue Growth 0.069 |
The market value of Colgate Palmolive is measured differently than its book value, which is the value of Colgate that is recorded on the company's balance sheet. Investors also form their own opinion of Colgate Palmolive's value that differs from its market value or its book value, called intrinsic value, which is Colgate Palmolive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Colgate Palmolive's market value can be influenced by many factors that don't directly affect Colgate Palmolive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Colgate Palmolive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Colgate Palmolive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Colgate Palmolive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.