The Procter & Gamble Company (PG) 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

+31.5%

$215.36

vs $163.79 price

Levered DCF

$210.07

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

5.43

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	21.72×	23.89×	26.33×	25×	23.97×	23.71×	23.31×	76.2×
P/B	6.54×	7.52×	7.64×	7.68×	7.58×	7.31×	6.53×	5.86×
P/S	4.08×	4.64×	4.57×	4.38×	4.41×	4.46×	4.28×	4.09×
EV / EBITDA	15.58×	17.43×	18.06×	17.75×	17.81×	17.35×	16.73×	32.17×
Gross margin	50.2%	51.2%	51.4%	47.9%	47.4%	51.2%	50.3%	48.6%
Operating margin	22.7%	24.3%	22.1%	22.1%	22.2%	23.6%	22.1%	8.1%
Net margin	18.4%	19.0%	17.7%	17.9%	18.4%	18.8%	18.4%	5.8%
Current ratio	0.68×	0.7×	0.73×	0.63×	0.65×	0.7×	0.85×	0.75×
Debt / equity	0.64×	0.68×	0.66×	0.76×	0.69×	0.71×	0.77×	0.64×
Interest coverage	22.52×	22.55×	20.05×	23.99×	40.58×	35.83×	33.78×	10.78×
Dividend yield	2.9%	2.5%	2.4%	2.5%	2.5%	2.4%	2.6%	2.7%
Payout ratio	63.8%	61.8%	62.6%	61.4%	59.5%	57.8%	59.8%	192.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	29.5%	30.7%	29.6%	31.3%	31.6%	30.8%	28.0%	8.3%
Return on invested capital	15.7%	16.5%	15.4%	15.2%	15.7%	15.4%	13.1%	3.8%
Return on assets	12.7%	12.8%	12.2%	12.1%	12.6%	12.0%	10.8%	3.4%
Free cash flow yield	4.3%	3.6%	4.3%	3.8%	3.8%	4.6%	4.7%	4.3%
Earnings yield	4.5%	4.1%	3.9%	4.1%	4.2%	4.2%	4.3%	1.4%
Enterprise value	$380.3B	$416.9B	$407.9B	$386.5B	$378.4B	$361.8B	$323.1B	$302.5B
Net debt / EBITDA	1.03×	1.08×	1.06×	1.25×	1.18×	1.08×	1.01×	2.75×
Cash conversion cycle (days)	-43	-41	-48	-40	-45	-53	-47	-39