Is Church & Dwight Co., Inc. (CHD) Fairly Valued?
Church & Dwight Co., Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 10, 2026.
By TGMCharts Research · Data as of · Updated
Church & Dwight Co., Inc. does not get a one-metric verdict. The stock trades at 31.80x trailing earnings and the analyst DCF (FMP) reference is $127, so the valuation read depends on whether growth and margins support that price.
The core evidence is the relationship between price, earnings, fair value, and business support. Five-year revenue CAGR is 4.54%, five-year EPS CAGR is -0.90%, and net margin is 11.81%. Those facts decide whether the multiple is defensible or stretched.
- Church & Dwight Co., Inc. closed at $97.16 on July 10, 2026.
- Trailing P/E is 31.80x and price-to-sales is 3.70x.
- Analyst DCF (FMP) is $127 with margin of safety at 32.05%.
- Five-year revenue CAGR is 4.54% and five-year EPS CAGR is -0.90%.
- Earnings yield is 3.14% and net margin is 11.81%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating the Earnings Multiple and Market Support
Analyzing the valuation of Church & Dwight Co., Inc. requires evaluating whether the business's fundamental metrics can sustain its current market pricing. As of July 10, 2026, the equity closed at $97.16, carrying a trailing earnings multiple of 31.80x. This trading price sits below the third-party analyst-DCF (FMP) fair value reference of $127, which points to an implied margin of safety of 32.05%.
To determine if this setup is fundamentally sound, we must analyze the company's operating performance. We look at top-line expansion, bottom-line compounding, and margin stability to see if they back up the current multiple. Relying on a single valuation ratio is insufficient; a comprehensive view requires aligning multiple fundamental indicators.
Assessing the Price-to-Sales Multiple and Owner Yield
The market currently prices the firm at a price-to-sales ratio of 3.70x. This revenue multiple represents the premium investors pay for the top-line performance. It should be analyzed alongside the earnings yield of 3.14%, which offers an alternative look at valuation by showing the cash flow generation relative to the equity's market price.
CHD P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 31.80x as of July 10, 2026.
A P/E ratio of 31.80x has to be judged against the company's five-year EPS CAGR of -0.90%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
CHD price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 3.70x.
Price-to-sales at 3.70x is most useful beside net margin of 11.81%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Comparing Market Price to Independent DCF Benchmarks
The independent analyst-DCF (FMP) calculation of $127 serves as a useful benchmark for evaluating the current market price of $97.16. The resulting margin of safety of 32.05% indicates that the market price is currently trading below this external valuation estimate. This difference suggests a potential buffer, but it should be weighed against the company's actual operating performance rather than viewed as an absolute indicator of value.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
CHD earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 3.14%.
The earnings yield of 3.14% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Analyzing Long-Term Revenue and EPS Growth Trends
The company's long-term growth history shows a divergence between top-line expansion and bottom-line compounding. Over the past five years, revenue grew at a CAGR of 4.54%, indicating steady business expansion. However, diluted earnings per share declined over the same period, with a five-year EPS CAGR of -0.90%. This divergence suggests that while the company is successfully growing its sales, it faces challenges in translating that growth into per-share earnings power.
CHD revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 4.54%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 4.54% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
CHD EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: -0.90%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of -0.90% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Evaluating Net Margin Strength and Sales Multiples
Profitability margins show how efficiently the business converts sales into net income. The firm currently maintains a net margin of 11.81%. When evaluated alongside the price-to-sales ratio of 3.70x, this profit margin helps determine if the company can sustain its current valuation. A solid net margin supports a higher sales multiple, but any downward pressure on margins could quickly make the current sales multiple difficult to justify.
CHD net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 11.81%. The bars below are annual fiscal years.
Net margin of 11.81% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Weighing the Bull and Bear Valuation Dynamics
The positive case for the current valuation relies on steady top-line growth and solid profit margins. The five-year revenue CAGR of 4.54% and a net margin of 11.81% show the company's consistent market presence and operating efficiency. Additionally, the market price trades below the analyst-DCF (FMP) benchmark, providing an analytical cushion.
Conversely, the negative case focuses on the long-term decline in per-share earnings, highlighted by the five-year EPS CAGR of -0.90%. Paying a trailing multiple of 31.80x for a business with declining long-term EPS growth introduces risk. If profit margins contract or top-line growth slows, the current valuation could face downward pressure.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 4.54% and five-year EPS CAGR of -0.90% support the business case.
- Net margin of 11.81% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 31.80x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at 32.05% should change the valuation read if it deteriorates after refresh.
Key Metrics That Could Shift the Valuation Outlook
Several factors could alter this valuation perspective. A significant change in the analyst-DCF (FMP) fair value estimate of $127 would directly impact the calculated margin of safety. Fundamentally, if the five-year EPS CAGR of -0.90% continues to decline, or if the net margin of 11.81% contracts, the current trailing earnings multiple of 31.80x would become increasingly difficult to sustain.
Synthesizing the Fundamental Valuation Indicators
In summary, evaluating Church & Dwight Co., Inc. requires balancing its market multiple against its long-term growth and profitability trends. While the stock trades below the independent analyst-DCF (FMP) reference of $127, the five-year decline in EPS CAGR of -0.90% warrants caution. Sustaining the current valuation multiple will depend on the company's ability to maintain its net margin of 11.81% and reverse the downward trend in per-share earnings.
FAQ
Is CHD fairly valued?
Church & Dwight Co., Inc. trades at 31.80x trailing earnings with an analyst-DCF (FMP) margin of safety of 32.05%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 4.54% and five-year EPS CAGR of -0.90%.
What valuation metric matters most for CHD?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this CHD valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 10, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $127.
- A break in five-year EPS support, currently -0.90%.
- Margin quality drifting away from the latest net margin of 11.81%.
The bottom line
Church & Dwight Co., Inc. valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: CHD fundamentalsContinue with Church & Dwight Co., Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-01 · period 2026-03-31 · SEC EDGAR source
- “In total, increased sales volumes and changes in mix, primarily from the exited businesses, resulted in a net benefit of $17.2.”
- “In total, increased sales volumes and changes in mix, primarily from the exited businesses, resulted in a net benefit of $6.4.”
- “Gross margin increased 140 basis points ("bps") in the first quarter of 2026 compared to the same period in 2025.”
- “Those seven brands are ARM & HAMMER; OXICLEAN; BATISTE; WATERPIK; THERABREATH; HERO and TOUCHLAND and represent approximately 70% of our net sales and profits.”
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Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.