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 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for PG, they are:
The company has produced more trailing twelve month cash flow than 94.3% of its sector Consumer Defensive.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than only 21.89% 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 3%; for context, that number is higher than 46.55% 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 CLX, WMT, NWL, UVV, and CL.