Procter Gamble Valuation

PG Stock  USD 162.61  2.06  1.28%   
At this time, the company appears to be undervalued. Procter Gamble holds a recent Real Value of $171.11 per share. The prevailing price of the company is $162.61. Our model determines the value of Procter Gamble from analyzing the company fundamentals such as Return On Equity of 0.32, shares outstanding of 2.35 B, and Operating Margin of 0.27 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support locking in undervalued entities and disposing overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Price Book
8.0173
Enterprise Value
409.3 B
Enterprise Value Ebitda
18.1287
Price Sales
4.5587
Forward PE
23.3645
Undervalued
Today
162.61
Please note that Procter Gamble's price fluctuation is very steady at this time. Calculation of the real value of Procter Gamble is based on 3 months time horizon. Increasing Procter Gamble's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Procter Gamble is useful when determining the fair value of the Procter stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Procter Gamble. Since Procter Gamble is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Procter Stock. However, Procter Gamble's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  162.61 Real  171.11 Target  155.36 Hype  162.57 Naive  160.81
The real value of Procter Stock, also known as its intrinsic value, is the underlying worth of Procter Gamble Company, which is reflected in its stock price. It is based on Procter Gamble's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Procter Gamble's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Procter Gamble's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
146.35
Downside
171.11
Real Value
171.93
Upside
Estimating the potential upside or downside of Procter Gamble helps investors to forecast how Procter stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Procter Gamble more accurately as focusing exclusively on Procter Gamble's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.391.311.44
Details
Hype
Prediction
LowEstimatedHigh
161.75162.57163.39
Details
Potential
Annual Dividend
LowForecastedHigh
2.742.782.82
Details
27 Analysts
Consensus
LowTarget PriceHigh
141.38155.36172.45
Details

Procter Gamble Investments

(3.82 Billion)

Procter Gamble Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Procter Gamble's current stock value. Our valuation model uses many indicators to compare Procter Gamble value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Procter Gamble competition to find correlations between indicators driving Procter Gamble's intrinsic value. More Info.
Procter Gamble is rated below average in beta category among related companies. It is rated below average in five year return category among related companies reporting about  6.21  of Five Year Return per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Procter Gamble by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Procter Gamble's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Procter Gamble's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Procter Gamble's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Procter Gamble and how it compares across the competition.

About Procter Gamble Valuation

The stock valuation mechanism determines the current worth of Procter Gamble on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Procter Gamble. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Procter Gamble based exclusively on its fundamental and basic technical indicators. By analyzing Procter Gamble's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Procter Gamble's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Procter Gamble. We calculate exposure to Procter Gamble's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Procter Gamble's related companies.
Last ReportedProjected for 2024
Gross Profit45.1 B28.5 B
Pretax Profit Margin 0.20  0.12 
Operating Profit Margin 0.20  0.13 
Net Profit Margin 0.16  0.09 
Gross Profit Margin 0.43  0.38 

Procter Gamble Quarterly Retained Earnings

121.62 Billion

8 Steps to conduct Procter Gamble's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Procter Gamble's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Procter Gamble's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Procter Gamble's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Procter Gamble's revenue streams: Identify Procter Gamble's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Procter Gamble's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Procter Gamble's growth potential: Evaluate Procter Gamble's management, business model, and growth potential.
  • Determine Procter Gamble's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Procter Gamble's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Procter Gamble's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Procter Gamble's value is low or high relative to the company's performance and growth projections. Determining the market value of Procter Gamble can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Procter Gamble represents a small ownership stake in the entity. As a stockholder of Procter, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Procter Gamble Dividends Analysis For Valuation

At this time, Procter Gamble's Dividends Paid is most likely to increase significantly in the upcoming years. The Procter Gamble's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 2.62, while Dividend Yield is projected to decrease to 0.02. . At this time, Procter Gamble's Retained Earnings are most likely to increase significantly in the upcoming years. The Procter Gamble's current Price Earnings To Growth Ratio is estimated to increase to 19.86, while Retained Earnings Total Equity is projected to decrease to roughly 99.4 B.
Last ReportedProjected for 2024
Dividends Paid10.3 B10.9 B
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.55  0.39 
Dividend Paid And Capex Coverage Ratio 2.55  2.62 
There are various types of dividends Procter Gamble can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Procter shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Procter Gamble directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Procter pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Procter Gamble by the value of the dividends paid out.

Procter Gamble Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Procter Gamble does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding2.5 B
Quarterly Earnings Growth Y O Y-0.114
Forward Price Earnings23.3645

Procter Gamble Current Valuation Indicators

Valuation refers to the process of determining the present value of Procter Gamble and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Procter we look at many different elements of the entity such as Procter's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Procter Gamble's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Procter Gamble's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Procter Gamble, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Procter Gamble's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Procter Gamble's worth.
When determining whether Procter Gamble is a strong investment it is important to analyze Procter Gamble's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Procter Gamble's future performance. For an informed investment choice regarding Procter Stock, refer to the following important reports:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Procter Gamble. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.
For more detail on how to invest in Procter Stock please use our How to Invest in Procter Gamble guide.
Note that the Procter Gamble information on this page should be used as a complementary analysis to other Procter Gamble's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running Procter Gamble's price analysis, check to measure Procter Gamble's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Procter Gamble is operating at the current time. Most of Procter Gamble's value examination focuses on studying past and present price action to predict the probability of Procter Gamble's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Procter Gamble's price. Additionally, you may evaluate how the addition of Procter Gamble to your portfolios can decrease your overall portfolio volatility.
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Is Procter Gamble's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Procter Gamble. If investors know Procter will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Procter Gamble listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.11)
Dividend Share
3.735
Earnings Share
5.97
Revenue Per Share
35.567
Quarterly Revenue Growth
0.032
The market value of Procter Gamble is measured differently than its book value, which is the value of Procter that is recorded on the company's balance sheet. Investors also form their own opinion of Procter Gamble's value that differs from its market value or its book value, called intrinsic value, which is Procter Gamble's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Procter Gamble's market value can be influenced by many factors that don't directly affect Procter Gamble's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Procter Gamble's value and its price as these two are different measures arrived at by different means. Investors typically determine if Procter Gamble is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Procter Gamble's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.