The Clorox Company (CLX) Stock Valuation — PE Analysis

Household & Personal Products · NYSE

Current Price

$82.88

PE Ratio (TTM)

17.1x

Intrinsic Value

$78.16

-6.0% margin of safety

AI MOAT & RISK ANALYSIS
AI Generated · For Reference OnlyCLX

COMPETITIVE MOAT

↑Brand Recognition and Loyalty

Clorox possesses strong brand equity across its portfolio, fostering consumer trust and repeat purchases. This loyalty creates a significant barrier for new entrants.

↑Distribution Network Scale

The company benefits from an extensive and established distribution network. This allows for efficient product placement and reach across numerous retail channels.

↑Product Innovation Pipeline

Clorox's ongoing investment in R&D and its IGNITE strategy drive product innovation. This helps maintain relevance and capture evolving consumer preferences.

INVESTMENT RISKS

↓Competition from Private Labels

The rise of strong private label brands in household essentials poses a direct threat, offering similar functionality at lower price points.

↓Shifting Consumer Preferences

Evolving consumer demands for natural or eco-friendly products could impact demand for traditional Clorox offerings if innovation lags.

↓Supply Chain Disruptions

Global supply chain volatility can impact raw material availability and increase logistics costs, affecting production and profitability.

Base case

CLX base case PE valuation

At a current price of $82.88, the base case PE valuation puts CLX fair value near $78.16 per share. That figure assumes 2.6% yearly earnings growth, a target PE multiple of 17.09x, and a 10% discount rate.

Intrinsic Value

$78.16

Margin of safety

-6.0%

Expected annual return

-1.2%

Base case assumptions: 2.6% annual earnings growth, 17.09x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-08.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the CLX PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Clorox Company respond.

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Company Overview

The Clorox Company is a global manufacturer and marketer of both consumer and professional products, operating through four distinct segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness division offers a range of cleaning solutions, including laundry additives and home care items under brand names such as Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409. It also supplies professional cleaning and disinfecting products via the CloroxPro and Clorox Healthcare brands, alongside professional food service goods from Hidden Valley. Additionally, this segment provides vitamins, minerals, and supplements (VMS) within the United States, marketed under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light labels. Dedicated to the U.S. market, the Household segment features cat litter products from Fresh Step and Scoop Away, food storage bags and wraps under the Glad brand, and grilling essentials like Kingsford charcoal. The Lifestyle segment, also primarily serving the U.S., encompasses dressings, dips, seasonings, and sauces, predominantly from Hidden Valley; natural personal care items offered by Burt's Bees; and water-filtration systems from Brita. Internationally, the International segment distributes a broad portfolio of products including laundry additives, home care items, water-filtration systems, digestive health products, grilling supplies, cat litter, various food items, bags and wraps, natural personal care products, and professional cleaning and disinfecting solutions. Key international brands include Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean, and Burt's Bees. Clorox's extensive product line reaches customers through a diverse array of channels. These include major retailers, grocery stores, warehouse clubs, discount outlets, home hardware centers, pharmacies, pet stores, military exchanges, both company-owned and third-party e-commerce platforms, distributors, and a direct sales force. Established in 1913, the company's corporate headquarters are situated in Oakland, California.

Financial Metrics — CLX PE Stock Valuation Data

PE Ratio (TTM)

17.1x

PEG Ratio

n/m

Earnings Yield

5.85%

ROE (TTM)

-1893.5%

Revenue/Share (TTM)

$55.18

Dividend Yield

6.05%

Debt/Equity

61.33x

Frequently Asked Questions

What is the PE ratio of CLX?

The trailing twelve-month PE ratio of CLX reflects how much investors pay per dollar of The Clorox Company's earnings. This metric is most useful when compared to Household & Personal Products peers and the company's own historical range.

Is CLX overvalued based on PE ratio?

CLX's PE of 17.1x combined with a PEG ratio of -0.64 provides a growth-adjusted perspective. CLX has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Household & Personal Products, a DCF analysis may be more appropriate.

How do I value CLX stock using PE ratio?

To value The Clorox Company using PE: (1) Compare the current PE (17.1x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (-0.64) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of CLX?

CLX's PEG ratio is -0.64, calculated by dividing the PE ratio (17.1x) by the expected earnings growth rate. Because CLX has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for CLX stock valuation?

PE ratio gives a quick relative read — how CLX is priced versus Household & Personal Products peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

P/E and DCF value CLX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.

CLX Stock Valuation — Free PE Ratio Analysis & Fair Value