The Procter Gamble's current Free Cash Flow is estimated to increase to about 14.3 B, while Enterprise Value is projected to decrease to roughly 370.1 B. Procter Gamble holds a recent Real Value of $151.16 per share. The prevailing price of the company is $152.66. At this time, the company appears to be fairly valued. Our model determines the value of Procter Gamble from analyzing the company fundamentals such as Return On Equity of 0.33, operating margin of 0.26 %, and Shares Outstanding of 2.36 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support locking in undervalued entities and disposing overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Procter Gamble's valuation include:
Enterprise Value Ebitda
Procter Gamble 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 Procter Gamble's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Please note that Procter Gamble's price fluctuation is very steady at this time. Calculation of the real value of Procter Gamble is based on 3 months time horizon. Increasing Procter Gamble's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Estimating the potential upside or downside of Procter Gamble helps investors to forecast how Procter 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 Procter Gamble more accurately as focusing exclusively on Procter Gamble'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 Procter Gamble's intrinsic value based on its ongoing forecasts of Procter Gamble's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Procter Gamble's closest peers. When choosing an evaluation method for Procter Gamble, 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.
Procter Gamble Investments
Procter Valuation Drivers Correlation
Many accounts on the financial statements of Procter Gamble are highly interrelated and sometimes correlated. Consequently, when conducting Procter'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 Procter
Click cells to compare fundamentals
Procter Valuation Trend
Knowing Procter Gamble's actual value is paramount for traders to make sound investment determinations. Procter Gamble's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Procter Gamble's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Procter Gamble'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.
Procter Market CapProcter Gamble is considered to be number one stock in market capitalization category among related companies. Market capitalization of Consumer Staples industry is at this time estimated at about 376.41 Billion. Procter Gamble totals roughly 359.8 Billion in market capitalization claiming about 96% of stocks in Consumer Staples industry.
Procter Gamble Valuation Ratios as Compared to CompetitionComparative valuation techniques use various fundamental indicators to help in determining Procter Gamble's current stock value. Our valuation model uses many indicators to compare Procter Gamble value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Procter Gamble competition to find correlations between indicators driving Procter Gamble's intrinsic value. More Info. Procter Gamble is considered to be number one stock in beta category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about 9.41 of Price To Sales per Beta. The Procter Gamble's current Price to Sales Ratio is estimated to increase to 4.37. Comparative valuation analysis is a catch-all model that can be used if you cannot value Procter Gamble by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Procter Gamble'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 Procter Gamble'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 Procter Gamble'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 Procter Gamble and how it compares across the competition.
About Procter Gamble ValuationThe stock valuation mechanism determines the current worth of Procter Gamble on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Procter Gamble. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Procter Gamble based exclusively on its fundamental and basic technical indicators. By analyzing Procter Gamble'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 Procter Gamble'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 Procter Gamble. We calculate exposure to Procter Gamble's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Procter Gamble's related companies.
8 Steps to conduct Procter Gamble's Valuation AnalysisCompany's valuation is the process of determining the worth of any company in monetary terms. It estimates Procter Gamble'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 Procter Gamble's valuation analysis, follow these 8 steps:
- Gather financial information: Obtain Procter Gamble's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Procter Gamble's revenue streams: Identify Procter Gamble's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Procter Gamble's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Procter Gamble's growth potential: Evaluate Procter Gamble's management, business model, and growth potential.
- Determine Procter Gamble'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 Procter Gamble'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 Procter Gamble represents a small ownership stake in the entity. As a stockholder of Procter, 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.
Procter Gamble Dividends Analysis For Valuation
Procter Gamble 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 Procter Gamble 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.
Procter Gamble Current Valuation Indicators
Valuation refers to the process of determining the present value of Procter Gamble and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Procter we look at many different elements of the entity such as Procter's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Procter Gamble'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 Procter Gamble'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 Procter Gamble, 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 Procter Gamble'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 Procter Gamble's worth.When determining whether Procter Gamble is a strong investment it is important to analyze Procter Gamble'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 Procter Gamble's future performance. For an informed investment choice regarding Procter Stock, refer to the following important reports:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Procter Gamble. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census.For more detail on how to invest in Procter Stock please use our How to Invest in Procter Gamble guide.Note that the Procter Gamble information on this page should be used as a complementary analysis to other Procter Gamble'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 the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Complementary Tools for Procter Stock analysis
When running Procter Gamble's price analysis, check to measure Procter Gamble'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 Procter Gamble is operating at the current time. Most of Procter Gamble's value examination focuses on studying past and present price action to predict the probability of Procter Gamble's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Procter Gamble's price. Additionally, you may evaluate how the addition of Procter Gamble to your portfolios can decrease your overall portfolio volatility.
Is Procter Gamble'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 Procter Gamble. If investors know Procter 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 Procter Gamble 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
Revenue Per Share
Quarterly Revenue Growth
The market value of Procter Gamble is measured differently than its book value, which is the value of Procter that is recorded on the company's balance sheet. Investors also form their own opinion of Procter Gamble's value that differs from its market value or its book value, called intrinsic value, which is Procter Gamble'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 Procter Gamble's market value can be influenced by many factors that don't directly affect Procter Gamble'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 Procter Gamble's value and its price as these two are different measures arrived at by different means. Investors typically determine if Procter Gamble is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Procter Gamble'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.