Colgate-Palmolive manufactures and markets consumer products worldwide. It operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. The company was founded in 1806 and is based in New York, New York.
CL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Colgate Palmolive Co. To summarize, we found that Colgate Palmolive Co ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Colgate Palmolive Co ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 24.83; that's higher than 87.33% of US stocks in the Consumer Defensive sector that have positive free cash flow.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately merely 22.54% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 36.85% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CL, try VLGEA, YEWB, UVV, K, and STKL.
COMPANY CLOSE UPDATES Terrence Horan Shares of Colgate-Palmolive Co. CL slid 0.04% to $76.91 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones Industrial Average DJIA rising 0.
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Psycho Analyst on Seeking Alpha | September 13, 2020