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 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Colgate Palmolive Co, consider:
Interest coverage, a measure of earnings relative to interest payments, is 22.66 -- which is good for besting 85.83% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet reveals debt to be 12% of the company's capital (with equity being the remaining amount). Approximately merely 23.53% 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 44.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Colgate Palmolive Co? See CORE, PG, TWNK, WMT, and KO.