The Clorox Company (CLX) Intrinsic Value & DCF Valuation
Household & Personal Products · NYSE
Current Price
$86.84
Intrinsic Value
$75.05
-15.7% margin of safety
What Is The Clorox Company's Intrinsic Value?
As of 2026-10-28, the base-case DCF model estimates the intrinsic value of The Clorox Company (CLX) at $75.05 per share, compared with a market price of $86.84, a margin of safety of -15.7%. The base case assumes 2.6% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $62.12 to $89.88. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is The Clorox Company (CLX) Undervalued?
At the current price of $86.84, CLX trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Brand Strength and Loyalty
Clorox commands strong brand recognition and consumer trust across its diverse product portfolio. This loyalty translates into pricing power and repeat purchases.
↑Distribution Network
The company possesses an extensive and established distribution network. This allows for efficient product placement and accessibility across various retail channels.
↑Product Diversification
Clorox's broad range of products, from cleaning supplies to personal care, reduces reliance on any single category. This diversification mitigates risk and broadens market appeal.
INVESTMENT RISKS
↓Supply Chain Disruptions
Global supply chain volatility can impact raw material availability and manufacturing costs. This can lead to production delays and affect profitability.
↓Intense Market Competition
The household and personal products industry is highly competitive with numerous established players and new entrants. This necessitates continuous innovation and marketing investment.
↓Regulatory Scrutiny
Changes in environmental, health, and safety regulations can impact product formulations and manufacturing processes. Compliance can be costly and time-consuming.
Base case
CLX base case valuation
Intrinsic Value
$75.05
Margin of safety
-15.7%
Expected annual return
-2.9%
Base case assumptions: 2.6% annual growth, 10.0% discount rate, 25.93x exit multiple, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CLX valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for The Clorox Company respond.
Open DCF 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 Stock Valuation Data
Revenue/Share (TTM)
$55.18
FCF/Share (TTM)
$3.33
ROIC (TTM)
20.4%
ROE (TTM)
-1893.5%
P/FCF
25.9x
EV/EBITDA
13.6x
FCF Yield
3.86%
Debt/Equity
61.33x
On a trailing twelve-month basis, CLX generates free cash flow per share of $3.33 alongside a ROIC of 20.4%, both central inputs for a DCF valuation. Its P/FCF ratio of 25.9x and FCF yield of 3.86% then frame how CLX is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of CLX?
The Clorox Company currently generates $3.33 in free cash flow per share. At the current price of $86.84, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is CLX undervalued?
CLX trades at a P/FCF ratio of 25.9x with a free cash flow yield of 3.86%. This P/FCF is in a moderate range. However, whether CLX is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value CLX stock using DCF?
To perform a DCF valuation on The Clorox Company: (1) Start with the trailing free cash flow per share ($3.33) as the base, (2) project future FCF growth over 5-10 years based on Household & Personal Products industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CLX's risk profile — with a debt-to-equity of 61.33x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to CLX?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The Clorox Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Household & Personal Products trends, then discounting those amounts to today's dollars. CLX's ROIC of 20.4% reflects how efficiently the company converts invested capital into profit.
How does WACC affect CLX stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CLX, with a debt-to-equity ratio of 61.33x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.6x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See CLX PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Defensive valuationsDCF and P/E value CLX with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.