As of July 10, 2025, Procter & Gamble Co's estimated intrinsic value ranges from $96.23 to $192.50 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $192.50 | +22.2% |
| Discounted Cash Flow (5Y) | $168.29 | +6.8% |
| Dividend Discount Model (Multi-Stage) | $145.40 | -7.7% |
| Dividend Discount Model (Stable) | $156.57 | -0.6% |
| Earnings Power Value | $96.23 | -38.9% |
Is Procter & Gamble Co (PG) undervalued or overvalued?
With the current market price at $157.52, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Procter & Gamble Co's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.36 | 0.41 |
| Cost of equity | 5.5% | 7.1% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 18.2% | 19.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| After-tax WACC | 5.4% | 6.9% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $168 | $419,583M | 84.1% |
| 10-Year Growth | $193 | $476,359M | 70.4% |
| 5-Year EBITDA | $111 | $284,499M | 76.6% |
| 10-Year EBITDA | $138 | $348,337M | 59.5% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $15,159M |
| Discount Rate (WACC) | 6.9% - 5.4% |
| Enterprise Value | $220,029M - $281,230M |
| Net Debt | $25,025M |
| Equity Value | $195,004M - $256,205M |
| Outstanding Shares | 2,345M |
| Fair Value | $83 - $109 |
| Selected Fair Value | $96.23 |
| Metric | Value |
|---|---|
| Market Capitalization | $369312M |
| Enterprise Value | $394337M |
| Trailing P/E | 23.83 |
| Forward P/E | 24.23 |
| Trailing EV/EBITDA | 10.65 |
| Current Dividend Yield | 259.05% |
| Dividend Growth Rate (5Y) | 4.57% |
| Debt-to-Equity Ratio | 0.09 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $57.75 |
| Discounted Cash Flow (5Y) | 25% | $42.07 |
| Dividend Discount Model (Multi-Stage) | 20% | $29.08 |
| Dividend Discount Model (Stable) | 15% | $23.49 |
| Earnings Power Value | 10% | $9.62 |
| Weighted Average | 100% | $162.01 |
Based on our comprehensive valuation analysis, Procter & Gamble Co's intrinsic value is $162.01, which is approximately 2.9% above the current market price of $157.52.
Key investment considerations:
Given these factors, we believe Procter & Gamble Co is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.