Colgate-Palmolive Company (CL) DCF Valuation
Transparent DCF models put Colgate-Palmolive Company (CL)'s fair value in a range of $53.67 – $99.57 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $89.50 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $89.50, the market is pricing in roughly +11.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +3.9%. The price is betting on acceleration above its track record.
Current Price
$89.50
Fair-Value Range
$53.67 – $99.57
Market-Implied Growth
+11.2%/yr
vs +3.9% 5Y actual
CL DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $3.0B · 0.80B shares · net debt $6.7B
Estimated Fair Value
$53.67
-40.0% vs $89.50
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $89.50; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $68.73 | $72.69 | $77.36 | $82.97 | $89.83 |
| 9.0% | $57.85 | $60.56 | $63.68 | $67.32 | $71.62 |
| 10.0% | $49.56 | $51.49 | $53.67 | $56.16 | $59.03 |
| 11.0% | $43.05 | $44.46 | $46.03 | $47.81 | $49.82 |
| 12.0% | $37.80 | $38.86 | $40.03 | $41.33 | $42.78 |
About Colgate-Palmolive Company
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.
- Sector
- Consumer Defensive
- Industry
- Household & Personal Products
- CEO
- Noel R. Wallace