The Clorox Company (CLX) Stock Valuation — PE Analysis
Household & Personal Products · NYSE
Current Price
$96.68
PE Ratio (TTM)
15.6x
Intrinsic Value
$95.19
-1.6% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Clorox commands strong consumer trust and recognition across its diverse portfolio of household brands. This deep-seated loyalty creates significant barriers to entry for new competitors.
↑Distribution Network Scale
The company's extensive and established distribution channels provide a significant advantage in reaching consumers efficiently. This scale makes it difficult for smaller players to compete on shelf space and availability.
↑Pricing Power in Staples
As a provider of essential household goods, Clorox possesses a degree of pricing power. Consumers are often willing to pay a premium for trusted brands during economic uncertainty.
INVESTMENT RISKS
↓Input Cost Volatility
Fluctuations in raw material and transportation costs can significantly impact Clorox's profitability. Managing these volatile inputs is crucial for maintaining margins.
↓Execution of Growth Strategies
The success of Clorox's simplified operating structure and growth acceleration plans hinges on effective execution. Any missteps could hinder performance and investor confidence.
↓Interest Rate Environment Impact
The current higher-for-longer interest rate environment has negatively impacted consumer staples valuations. This can make it harder for Clorox to finance growth and may pressure its stock price.
Base case
CLX base case PE valuation
At a current price of $96.68, the base case PE valuation puts CLX fair value near $95.19 per share. That figure assumes 2.5% yearly earnings growth, a target PE multiple of 16x, and a 10% discount rate.
Intrinsic Value
$95.19
Margin of safety
-1.6%
Expected annual return
-0.3%
Base case assumptions: 2.5% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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.
Open PE Calculator for CLXCompany 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)
15.6x
PEG Ratio
1.54
Earnings Yield
6.44%
ROE (TTM)
2826.2%
Revenue/Share (TTM)
$55.70
Dividend Yield
5.13%
Debt/Equity
n/m
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 15.6x combined with a PEG ratio of 1.54 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. 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 (15.6x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (1.54) 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 1.54, calculated by dividing the PE ratio (15.6x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. 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 CLX, with a strong ROE of 2826.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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
- See CLX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value CLX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.