Colgate Stock Valuation

CL
 Stock
  

USD 81.97  1.83  2.28%   

What is the enterprise value of Colgate Palmolive? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Colgate Palmolive, is its stock price multiplied by the total number of shares outstanding, calculating Colgate Palmolive's enterprise value requires a different approach. It uses Colgate Palmolive's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Colgate Palmolive Free Cash Flow is relatively stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 2.97 Billion. Enterprise Value is expected to hike to about 79.1 B this year, although Tangible Asset Value will most likely fall to nearly 8.7 B.
Colgate-Palmolive shows a prevailing Real Value of $90.65 per share. The current price of the firm is $81.97. At this time, the firm appears to be undervalued. Our model approximates the value of Colgate-Palmolive from analyzing the firm fundamentals such as Current Valuation of 71.85 B, return on equity of 318.19 %, and Profit Margin of 11.70 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Colgate Palmolive Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Colgate Palmolive's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Colgate Most Recent Valuation Data

Price Book
208.52
Price Sales
3.93
Forward Annual Dividend Yield
0.0229
EBITDA
4.3 B
Dividend Share
1.8
Ex Dividend Date
2022-07-20
Beta
0.55
Undervalued
Today 81.97
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.
90.65
Real Value
92.14
Upside
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:
Earnings
Estimates (7)
LowProjected EPSHigh
3.193.213.24
Details
Hype
Prediction
LowEstimated ValueHigh
80.5182.0083.49
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.150.150.15
Details
11 Analysts
Consensus
LowTarget PriceHigh
77.0086.9095.00
Details
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 Valuation Drivers Correlation

Many accounts on the financial statements of Colgate-Palmolive are highly interrelated and sometimes correlated. Consequently, when conducting Colgate's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Colgate
Click cells to compare fundamentals

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 number one stock in market capitalization category among related companies. Market capitalization of Household & Personal Products industry is currently estimated at about 1.76 Trillion. Colgate Palmolive holds roughly 67.15 Billion in market capitalization claiming about 4% of equities under Household & Personal Products industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

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 number one stock in price to book category among related companies. It is number one stock in price to earning category among related companies reporting about  0.22  of Price to Earning per Price to Book. The ratio of Price to Book to Price to Earning for Colgate-Palmolive is roughly  4.48 . Colgate Palmolive Price to Earnings Ratio are relatively stable at the moment as compared to the past year. The company's current value of Price to Earnings Ratio is estimated at 33.44. Earnings before Tax is expected to hike to about 2.9 B this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 3.6 B.. 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 equity 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 ReportedProjected for 2022
Gross Profit10.4 B9.5 B
Profit Margin 0.12  0.14 
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York. Colgate Palmolive operates under Household Personal Products classification in the United States and is traded on New York Stock Exchange. It employs 33800 people.

Colgate Palmolive Quarterly Enterprise Value

70.15 Billion

Share
Colgate Palmolive's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Colgate Palmolive's value is low or high relative to the company's performance and growth projections. Determining the market value of Colgate Palmolive can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Please note that Colgate Palmolive has scaled down on payment of dividends at this time. Colgate Palmolive Earnings before Tax are relatively stable at the moment as compared to the past year. The company's current value of Earnings before Tax is estimated at 2.93 Billion
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 Valuation Growth Rates

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.
Quick Ratio0.54
Earnings Quarterly Growth-17.90%
Revenue Growth1.30%
Payout Ratio74.69%
Enterprise Value To Ebitda17.01
Earnings Growth-17.50%
Enterprise Value To Revenue4.11

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.
Continue to Trending Equities. Note that the Colgate-Palmolive information on this page should be used as a complementary analysis to other Colgate Palmolive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Colgate-Palmolive 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 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 YOY
-0.17
Market Capitalization
68.7 B
Quarterly Revenue Growth YOY
0.013
Return On Assets
0.15
Return On Equity
0.32
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 Colgate Palmolive value 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.