Procter Stock Valuation

PG
 Stock
  

USD 146.11  2.32  1.61%   

What is the value of Procter Gamble today? 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 Procter Gamble, is its stock price multiplied by the total number of shares outstanding, calculating Procter Gamble's enterprise value requires a different approach. It uses Procter Gamble's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of July 2, 2022, Free Cash Flow is expected to decline to about 10.2 B. In addition to that, Enterprise Value is expected to decline to about 316 B.
Procter Gamble holds a recent Real Value of $152.75 per share. The prevailing price of the company is $146.11. At this time, the company appears to be undervalued. Our model determines the value of Procter Gamble from analyzing the company fundamentals such as Operating Margin of 26.96 %, shares outstanding of 2.42 B, and Return On Equity of 31.60 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
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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.

Procter Most Recent Valuation Data

Price Book
7.7
Price Sales
4.33
Forward Annual Dividend Yield
0.0276
EBITDA
21.5 B
Dividend Share
3.48
Ex Dividend Date
2022-04-21
Beta
0.39
Undervalued
Today 146.11
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.
Our valuation method for Procter Gamble is useful when determining the fair value of the Procter stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Procter Gamble. Since Procter Gamble is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Procter Stock. However, Procter Gamble'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.
131.50
Downside
152.75
Real Value
154.35
Upside
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:
Earnings
Estimates (8)
LowProjected EPSHigh
5.855.915.95
Details
Hype
Prediction
LowEstimated ValueHigh
144.49146.09147.69
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.260.260.26
Details
12 Analysts
Consensus
LowTarget PriceHigh
138.00158.50185.00
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 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

7.33 Billion

Share

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 Cap

Procter Gamble is considered to be number one stock in market capitalization category among related companies. Market capitalization of Household & Personal Products industry is at this time estimated at about 1.29 Trillion. Procter Gamble totals roughly 353.39 Billion in market capitalization claiming about 27% of equities under Household & Personal Products industry.
Capitalization  Total debt  Valuation  Revenue  Workforce

Procter Gamble Valuation Ratios as Compared to Competition

Comparative 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 price to book category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  0.57  of Price to Sales per Price to Book. The ratio of Price to Book to Price to Sales for Procter Gamble is roughly  1.76 . As of July 2, 2022, Price to Sales Ratio is expected to decline to 4.08. 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 Valuation

The equity 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.
Last ReportedProjected for 2022
Gross Profit29.6 B30.9 B
Profit Margin 16.92  15.12 
The Procter Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments Beauty Grooming Health Care Fabric Home Care and Baby, Feminine Family Care. The Beauty segment offers conditioners, shampoos, styling aids, and treatments and antiperspirants and deodorants, personal cleansing, and skin care products under the Head Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, and SK-II brands. The Procter Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.
Procter Gamble's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Procter Gamble's value is low or high relative to the company's performance and growth projections. Determining the market value of Procter Gamble can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Please note that Procter Gamble has scaled down on payment of dividends at this time. Procter Gamble Price to Earnings Ratio are projected to increase significantly based on the last few years of reporting. The past year's Price to Earnings Ratio were at 86.96. The current year Earnings before Tax is expected to grow to about 5.5 B, whereas Earnings per Basic Share are forecasted to decline to 4.40.
There are various types of dividends Procter Gamble 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 Procter 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 Procter Gamble directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Procter pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Procter Gamble by the value of the dividends paid out.

Procter Gamble 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 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.
Quick Ratio0.41
Earnings Quarterly Growth2.60%
Revenue Growth7.00%
Payout Ratio60.83%
Enterprise Value To Ebitda19.17
Earnings Growth5.10%
Enterprise Value To Revenue5.17

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.
Please check Your Equity Center. 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Complementary Tools for Procter Stock analysis

When running Procter Gamble 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 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.
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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 YOY
0.051
Market Capitalization
345 B
Quarterly Revenue Growth YOY
0.07
Return On Assets
0.0985
Return On Equity
0.32
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 Procter Gamble value 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.