Colgate-Palmolive Company (CL) Fair Value & PE Analysis
Household & Personal Products · NYSE
Current Price
$93.49
PE Ratio (TTM)
36.0x
Intrinsic Value
$86.6
-8.0% margin of safety
What Is Colgate-Palmolive Company's Fair Value?
As of 2026-07-29, applying a 36.0x earnings multiple to Colgate-Palmolive Company's (CL) earnings per share of $2.6 yields a fair value estimate of $86.6 per share, versus a market price of $93.49.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $73.42 to $101.55. 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 · CL intrinsic value (DCF view)
Is Colgate-Palmolive Company (CL) Overvalued?
At $93.49, CL trades about 8.0% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Brand Equity and Loyalty
Colgate's strong brand recognition and consumer trust, built over decades, create significant loyalty. This allows for premium pricing and repeat purchases across its diverse product portfolio.
↑Global Distribution Network
An extensive and entrenched global distribution system provides a significant barrier to entry. This network ensures widespread product availability and efficient market penetration.
↑Economies of Scale
Large-scale manufacturing and procurement operations lead to cost advantages. This efficiency allows Colgate to maintain competitive pricing while preserving healthy profit margins.
INVESTMENT RISKS
↓North America Market Softness
Weakness in the North American market, a significant revenue contributor, could impact overall growth. This softness may stem from economic factors or increased competition.
↓Premium Valuation Concerns
The stock's recent strong performance and premium valuation may limit future upside. Investors might be hesitant to buy at current levels, anticipating a pullback.
↓Input Cost Volatility
Fluctuations in raw material and energy costs can pressure profit margins. Managing these volatile inputs is crucial for maintaining profitability.
Base case
CL base case PE valuation
Intrinsic Value
$86.6
Margin of safety
-8.0%
Expected annual return
-1.5%
Base case assumptions: 5.3% annual earnings growth, 36x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 CL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Colgate-Palmolive Company respond.
Open PE Calculator for CLCompany Overview
Operating globally, Colgate-Palmolive Company and its affiliated entities are engaged in the production and distribution of a diverse range of consumer goods. Its operations are structured into two primary divisions: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care division encompasses a broad array of offerings, spanning oral hygiene (e.g., toothpastes, toothbrushes, mouthwashes), personal care (e.g., bar and liquid soaps, shower gels, shampoos, conditioners, deodorants, antiperspirants, skin health items), and home care solutions (e.g., dishwashing detergents, fabric conditioners, household cleaners). These products are distributed through various channels, including traditional and online retailers, wholesalers, and distributors, under well-known brand names such as Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly. Furthermore, this segment supplies specialized pharmaceutical products to dentists and other professionals in oral healthcare. Conversely, the Pet Nutrition segment focuses on providing specialized pet food. This includes everyday nutritional options marketed under the Hill's Science Diet brand, as well as therapeutic diets designed to assist in managing various health conditions in dogs and cats, sold under the Hill's Prescription Diet brand. Distribution for these pet nutrition items occurs via pet supply stores, veterinary clinics, and online retail platforms. Established in 1806, Colgate-Palmolive Company maintains its corporate headquarters in New York, New York.
Financial Metrics — CL PE Stock Valuation Data
PE Ratio (TTM)
36.0x
PEG Ratio
n/m
Earnings Yield
2.78%
ROE (TTM)
475.1%
Revenue/Share (TTM)
$25.92
Dividend Yield
2.25%
Debt/Equity
54.99x
Frequently Asked Questions
What is the PE ratio of CL?
The trailing twelve-month PE ratio of CL reflects how much investors pay per dollar of Colgate-Palmolive Company's earnings. This metric is most useful when compared to Household & Personal Products peers and the company's own historical range.
Is CL overvalued based on PE ratio?
CL's PE of 36.0x combined with a PEG ratio of -1.33 provides a growth-adjusted perspective. CL 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 CL stock using PE ratio?
To value Colgate-Palmolive Company using PE: (1) Compare the current PE (36.0x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (-1.33) 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 CL?
CL's PEG ratio is -1.33, calculated by dividing the PE ratio (36.0x) by the expected earnings growth rate. Because CL 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 CL stock valuation?
PE ratio gives a quick relative read — how CL is priced versus Household & Personal Products peers. DCF provides an absolute value based on projected free cash flows. For CL, with a strong ROE of 475.1%, 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 CL 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 CL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.