Procter & Gamble manufactures and sells branded consumer packaged goods. The company operates through five segments: Beauty; Grooming; Health Care; Fabric Care and Home Care; and Baby, Feminine and Family Care. The company was founded in 1837 and is based in Cincinnati, Ohio.
PG 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 PROCTER & GAMBLE Co. To summarize, we found that PROCTER & GAMBLE Co ranked in the 27th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 60.33%. The most interesting components of our discounted cash flow analysis for PROCTER & GAMBLE Co ended up being:
The company has produced more trailing twelve month cash flow than 96.1% of its sector Consumer Defensive.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than just 21.73% of the free cash flow producing stocks we're observing.
PG'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 38.94% 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 PG, try EL, CLX, COST, TPB, and KO.