Colgate-Palmolive Company (CL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+34.3%

$130.28

vs $96.99 price

Levered DCF

$159.76

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

7.01

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	29.93×	25.75×	28.67×	36.99×	33.34×	27.15×	24.94×	21.57×
P/B	1,183.4×	350.65×	108.3×	164.34×	118.41×	98.61×	505.47×	-508.02×
P/S	3.14×	3.7×	3.39×	3.67×	4.14×	4.45×	3.77×	3.33×
EV / EBITDA	14.62×	16.85×	17.44×	22.06×	21.04×	18.54×	16.64×	13.79×
Gross margin	60.1%	60.2%	57.8%	56.5%	59.1%	60.3%	59.1%	59.2%
Operating margin	16.2%	21.8%	21.2%	20.0%	22.3%	23.7%	24.0%	24.8%
Net margin	10.5%	14.4%	11.8%	9.9%	12.4%	16.4%	15.1%	15.4%
Current ratio	0.83×	0.92×	1.11×	1.28×	1.09×	0.99×	1.03×	1.14×
Debt / equity	158.41×	40.15×	14.88×	23.12×	12.86×	11.06×	72.5×	-62.41×
Interest coverage	12.38×	15.01×	14.39×	21.47×	33.21×	24.44×	19.59×	19.95×
Dividend yield	2.9%	2.4%	2.7%	2.6%	2.3%	2.1%	2.7%	3.1%
Payout ratio	85.5%	61.9%	76.0%	94.7%	77.5%	55.7%	68.2%	66.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3948.1%	1362.7%	377.7%	445.1%	355.7%	362.7%	2023.1%	-2352.9%
Return on invested capital	22.8%	30.6%	24.8%	22.4%	26.3%	25.7%	24.7%	32.2%
Return on assets	13.1%	18.0%	14.0%	11.3%	14.4%	16.9%	15.7%	19.7%
Free cash flow yield	5.7%	4.8%	4.6%	2.8%	3.8%	4.5%	4.7%	5.1%
Earnings yield	3.3%	3.9%	3.5%	2.7%	3.0%	3.7%	4.0%	4.6%
Enterprise value	$71.2B	$81.8B	$74.1B	$74.4B	$79.1B	$80.6B	$66.7B	$57.5B
Net debt / EBITDA	1.49×	1.53×	1.91×	2.52×	1.86×	1.69×	1.89×	1.35×
Cash conversion cycle (days)	27	36	40	55	38	44	43	34