The Procter & Gamble Company (PG) Fair Value & PE Analysis
Household & Personal Products · NYSE
Current Price
$158.26
PE Ratio (TTM)
23.6x
Intrinsic Value
$141.86
-11.6% margin of safety
What Is The Procter & Gamble Company's Fair Value?
As of 2026-10-28, applying a 23.8x earnings multiple to The Procter & Gamble Company's (PG) earnings per share of $6.66 yields a fair value estimate of $141.86 per share, versus a market price of $158.26.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $116.6 to $170.85. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · PG intrinsic value (DCF view)
Is The Procter & Gamble Company (PG) Overvalued?
At $158.26, PG trades about 11.6% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Dominant Brand Equity
PG's iconic brands like Pampers and Tide possess immense consumer trust and loyalty. This allows for premium pricing and repeat purchases, creating a significant barrier to entry.
↑Vast Distribution Network
The company's extensive global supply chain and retail relationships are unparalleled. This ensures widespread product availability and shelf space, a critical advantage over smaller competitors.
↑Economies of Scale
Massive production volumes and R&D investments lead to cost efficiencies. This scale allows PG to outspend rivals on innovation and marketing, further solidifying its market position.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in raw material costs can impact profit margins. PG's reliance on various inputs makes it susceptible to supply chain disruptions and price swings.
↓Changing Consumer Preferences
Shifting consumer demands towards sustainability and natural ingredients pose a challenge. PG must continuously innovate to align its product portfolio with evolving ethical and health consciousness.
↓Intensifying Global Competition
Emerging market players and established international competitors are increasing pressure. PG faces a dynamic landscape where market share can be contested across various geographies.
Base case
PG base case PE valuation
Intrinsic Value
$141.86
Margin of safety
-11.6%
Expected annual return
-2.2%
Base case assumptions: 3.1% annual earnings growth, 23.76x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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 PG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Procter & Gamble Company respond.
Open PE Calculator for PGCompany Overview
The Procter & Gamble Company, commonly referred to as P&G, is a global enterprise that supplies a broad spectrum of branded consumer products to markets worldwide. The company's operations are divided into five main business divisions: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers an assortment of hair care products, including conditioners, shampoos, styling aids, and treatments, under popular names like Head & Shoulders, Herbal Essences, Pantene, and Rejoice. It also features antiperspirants, deodorants, personal cleansing solutions, and skin care items from brands such as Olay, Old Spice, Safeguard, Secret, and SK-II. Within the Grooming division, P&G provides a range of shave care products and grooming appliances, prominently featuring brands like Braun, Gillette, and Venus. The Health Care unit encompasses oral hygiene essentials, including toothbrushes, toothpastes, and other dental care products sold under the Crest and Oral-B brand names. This segment further extends to gastrointestinal remedies, rapid diagnostics, respiratory care, vitamins/minerals/supplements, pain relief, and various other personal health care items from brands such as Metamucil, Neurobion, Pepto-Bismol, and Vicks. In the Fabric & Home Care category, consumers find fabric enhancers, laundry additives, and laundry detergents through labels like Ariel, Downy, Gain, and Tide. Additionally, this division offers air care products, dishwashing solutions, professional cleaning supplies (P&G Professional), and surface cleaners, exemplified by brands such as Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer. Finally, the Baby, Feminine & Family Care segment provides infant care products, including baby wipes, taped diapers, and pants, under the Luvs and Pampers brands. It also supplies adult incontinence and feminine hygiene products from Always, Always Discreet, and Tampax, along with paper towels, tissues, and toilet paper marketed as Bounty, Charmin, and Puffs. P&G distributes its extensive product portfolio through a vast commercial network, including large retail chains, e-commerce platforms, grocery stores, membership clubs, pharmacies, department stores, various distributors, wholesalers, specialty beauty retailers, high-frequency stores, electronics outlets, and professional channels, as well as direct-to-consumer sales. The Procter & Gamble Company was established in 1837 and its corporate headquarters are located in Cincinnati, Ohio.
Financial Metrics — PG PE Stock Valuation Data
PE Ratio (TTM)
23.6x
PEG Ratio
n/m
Earnings Yield
4.21%
ROE (TTM)
29.5%
Revenue/Share (TTM)
$36.52
Dividend Yield
2.71%
Debt/Equity
0.71x
Frequently Asked Questions
What is the PE ratio of PG?
The trailing twelve-month PE ratio of PG reflects how much investors pay per dollar of The Procter & Gamble Company's earnings. This metric is most useful when compared to Household & Personal Products peers and the company's own historical range.
Is PG overvalued based on PE ratio?
PG's PE of 23.6x combined with a PEG ratio of -5.92 provides a growth-adjusted perspective. PG 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 PG stock using PE ratio?
To value The Procter & Gamble Company using PE: (1) Compare the current PE (23.6x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (-5.92) 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 PG?
PG's PEG ratio is -5.92, calculated by dividing the PE ratio (23.6x) by the expected earnings growth rate. Because PG 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 PG stock valuation?
PE ratio gives a quick relative read — how PG is priced versus Household & Personal Products peers. DCF provides an absolute value based on projected free cash flows. For PG, with a strong ROE of 29.5%, 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 PG 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 PG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.