TGM's two-stage DCF values Colgate-Palmolive Company (CL) between $63.43 and $131.56 depending on assumptions, with a base case of $89.65. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$88.23 is justified only if free cash flow grows about +5.7% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.0%/yr | 8.5% | $63.43 |
| Base case | 6.0%/yr | 7.5% | $89.65 |
| Optimistic | 9.0%/yr | 6.5% | $131.56 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 9, 2026 · assumptions not provided | $87.84 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$88.23
Market-Implied Growth
+5.7%/yr
vs +7.7% 5Y actual
Model Scenario Range
$63.43 – $131.56
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for CL (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $3.3B · 0.80B shares · net debt $6.7B
Estimated Fair Value
$89.65
+1.6% vs $88.23
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $88.23; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $119 | $135 | $156 | $186 | $230 |
| 6.5% | $93.07 | $103 | $115 | $130 | $150 |
| 7.5% | $75.81 | $82.10 | $89.65 | $98.86 | $110 |
| 8.5% | $63.50 | $67.91 | $73.05 | $79.11 | $86.39 |
| 9.5% | $54.27 | $57.51 | $61.20 | $65.45 | $70.41 |
