Clorox manufactures and markets consumer and professional products worldwide. The company operates in four segments: Cleaning, Household, Lifestyle, and International. The company was founded in 1913 and is based in Oakland, California.
CLX 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 Clorox Co. To summarize, we found that Clorox Co ranked in the 36th 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. As for the metrics that stood out in our discounted cash flow analysis of Clorox Co, consider:
Interest coverage, a measure of earnings relative to interest payments, is 12.97 -- which is good for besting 79.8% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 22.68% of the free cash flow producing stocks we're observing.
CLX'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 36.67% 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 CLX, try KMB, INGR, CHGG, RAD, and SPB.
"You have to be absolutely unafraid of having an opinion and to advocate for that opinion," says Clorox ([[CLX]] -0.8%) CEO Linda Rendle, youngest executive to lead a Fortune 500 company and first woman to lead Clorox, as reported by The Wall Street Journal.She was responsible for launching the initiative...