PG

Procter & Gamble Company (The)Consumer Defensive / Household & Personal ProductsINTACT

The Procter & Gamble Company provides branded consumer packaged goods worldwide. It operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The company offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; antiperspirants, deodorants, and personal cleansing products under the Native, Old Spice, Safeguard, and Secret brands; and facial moisturizers, cleaners, and treatments under the Olay and SK-II brands. It also provides blades, razors, shave products, appliances, and other grooming products under the Braun, Gillette, and Venus brands. In addition, the company offers toothbrushes, toothpastes, and other oral care products under the Crest and Oral-B brands; and gastrointestinal, pain relief, rapid diagnostics, respiratory, vitamins/minerals/supplements, and other personal health care products under the Metamucil, Neurobion, Pepto-Bismol, and Vicks brands. Further, it provides fabric enhancers, and laundry additives and detergents under the Ariel, Downy, Gain, and Tide brands; and air and dish care, P&G professional, and surface care under the Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands. Additionally, the company offers baby wipes, taped diapers, and pants under the Luvs and Pampers brands; adult incontinence and menstrual care products under the Always, Always Discreet, and Tampax brands; and paper towels, tissues, and toilet papers under the Bounty, Charmin, and Puffs brands. It sells its products through mass merchandisers, social ecommerce channels, grocery and specialty beauty stores, membership club stores, drug and department stores, distributors, wholesalers, airport duty-free and high-frequency stores, pharmacies, electronics stores, and professional channels, as well as directly to consumers. The company was founded in 1837 and is headquartered in Cincinnati, Ohio.

Share Price
$145.27
52W: $137.62 - $167.25
DCF Fair Value
$127.31
-14.1% Premium
P/E (TTM)
21.9x
ROIC
16.6%
Operating Margin
22.1%
FCF Yield
3.9%
Debt / Equity
0.64x
Piotroski Score
7/9
Altman Z-Score
3.34
Market Cap
$337.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($127.31)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$127.31
MOS Buy Target (-25%)
$95.48
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$145.27
DCF Fair Value
$127.51
-13.9% Premium
$13,281M
$100M$13,281M (Reported)$50,000M
11.1%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$25,100M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$134.8B
PV of Terminal Value
$186.6B
Implied Enterprise Value
$321.4B
Implied Equity Value
$296.3B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$14,755$16,393$18,213$20,234$22,480$23,492$24,549$25,654$26,808$28,014
Present Value (PV)$13,537$13,798$14,064$14,334$14,611$14,007$13,429$12,875$12,343$11,834

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-148.5% Premium
$58.47

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $6.62BVPS: $22.95
Revised Graham Formula+4.6%
$152.32

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings3.7% Yield
$5.43 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $12.6BYield: 3.7%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
8.8% CAGR (Next 10 Yrs)

At the current price of $145.27, the market is assuming the business will compound Free Cash Flow at 8.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil PG with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Procter & Gamble Company (The). If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 22.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Procter & Gamble Company (The) (PG) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Procter & Gamble Company (The).

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Procter & Gamble Company (The) has an estimated DCF intrinsic fair value of $127.31 per share compared to its current market price of $145.27. This represents an estimated 14.1% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $58.46.

Related Consumer Defensive Value Stocks & Sector Peers

Compare Procter & Gamble Company (The) with audited intrinsic valuation models across the Consumer Defensive sector.

View All S&P 500 Stocks