Procter & Gamble Co

PG

Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics

Mkt Cap

$384.7B

PE

25.91

Debt

$31.98B

Cash

$6.828B

EV

$409.8B

FCF

$16.16B

Market Cap

$384.7B

P/E Ratio

25.91

Debt

$31.98B

Cash

$6.828B

EV

$409.8B

FCF

$16.16B

Charts data: {"Earnings":[{"time":"2014-06-29","value":11390000000},{"time":"2015-06-29","value":6777000000},{"time":"2016-06-29","value":10253000000},{"time":"2017-06-29","value":15079000000},{"time":"2018-06-29","value":9485000000},{"time":"2019-06-29","value":3634000000},{"time":"2020-06-29","value":12764000000},{"time":"2021-06-29","value":14035000000},{"time":"2022-06-29","value":14461000000},{"time":"2023-06-29","value":14371000000}],"Sales":[{"time":"2014-06-29","value":29400000000},{"time":"2015-06-29","value":76279000000},{"time":"2016-06-29","value":65299000000},{"time":"2017-06-29","value":65058000000},{"time":"2018-06-29","value":66832000000},{"time":"2019-06-29","value":67684000000},{"time":"2020-06-29","value":70950000000},{"time":"2021-06-29","value":76118000000},{"time":"2022-06-29","value":80187000000},{"time":"2023-06-29","value":82006000000}],"Net Margins":[{"time":"2014-06-29","value":0.3874149659863946},{"time":"2015-06-29","value":0.08884489833374848},{"time":"2016-06-29","value":0.15701618707790319},{"time":"2017-06-29","value":0.23177779827231085},{"time":"2018-06-29","value":0.14192303088340916},{"time":"2019-06-29","value":0.05369068021984516},{"time":"2020-06-29","value":0.1799013389711064},{"time":"2021-06-29","value":0.1843847710134265},{"time":"2022-06-29","value":0.18034095302231035},{"time":"2023-06-29","value":0.1752432748823257}],"Assets":[{"time":"2014-06-29","value":144266000000},{"time":"2015-06-29","value":129495000000},{"time":"2016-06-29","value":127136000000},{"time":"2017-06-29","value":120406000000},{"time":"2018-06-29","value":118310000000},{"time":"2019-06-29","value":115095000000},{"time":"2020-06-29","value":120700000000},{"time":"2021-06-29","value":119307000000},{"time":"2022-06-29","value":117208000000},{"time":"2023-06-29","value":120829000000}],"Stockholders Equity":[{"time":"2014-06-29","value":69976000000},{"time":"2015-06-29","value":63050000000},{"time":"2016-06-29","value":57983000000},{"time":"2017-06-29","value":55778000000},{"time":"2018-06-29","value":52883000000},{"time":"2019-06-29","value":47579000000},{"time":"2020-06-29","value":46878000000},{"time":"2021-06-29","value":46654000000},{"time":"2022-06-29","value":46854000000},{"time":"2023-06-29","value":47065000000}],"ROE":[{"time":"2014-06-29","value":0.16277009260317823},{"time":"2015-06-29","value":0.10748612212529739},{"time":"2016-06-29","value":0.17682769087491162},{"time":"2017-06-29","value":0.2703395604001578},{"time":"2018-06-29","value":0.17935820585065143},{"time":"2019-06-29","value":0.07637823409487379},{"time":"2020-06-29","value":0.27228124066726395},{"time":"2021-06-29","value":0.3008316543061688},{"time":"2022-06-29","value":0.30863960387586975},{"time":"2023-06-29","value":0.3053436736428344}],"ROA":[{"time":"2014-06-29","value":0.10597091483786894},{"time":"2015-06-29","value":0.09104598633151859},{"time":"2016-06-29","value":0.10572143216712812},{"time":"2017-06-29","value":0.1158995398900387},{"time":"2018-06-29","value":0.11589045727326515},{"time":"2019-06-29","value":0.04767366088883097},{"time":"2020-06-29","value":0.13012427506213753},{"time":"2021-06-29","value":0.15075393732136422},{"time":"2022-06-29","value":0.15197768070438877},{"time":"2023-06-29","value":0.15007986493308725}]}

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

Sector

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DCF

Discounted Cash Flow Valuation of Procter & Gamble Co

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$16.16B	$16.9B	$17.67B	$18.48B	$19.33B	$20.21B	$21.14B	$22.11B	$23.12B	$24.18B	$25.28B	$252.8B
DCF		$14.7B	$13.36B	$12.15B	$11.05B	$10.05B	$9.139B	$8.31B	$7.557B	$6.872B	$6.249B	$62.49B
Value	$161.9B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 6.1%

Earnings Stability 15%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	8.9%	16%	23%	14%	5.4%	18%	18%	18%	18%	18%
ROA	9.1%	11%	12%	12%	4.8%	13%	15%	15%	15%	16%
ROE	11%	18%	27%	18%	7.6%	27%	30%	31%	31%	29%

What is the average Net Margin?

The average Net Margin over the past 5 years is +15.26%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.57%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.44%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.44%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +24.05%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.87%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	3.23	2.52	3.37	2.81	2.53	2.42	2.05	2.32	2.51	1.98
Debt Equity	0.56	0.53	0.57	0.59	0.63	0.74	0.69	0.67	0.74	0.64
MIN
Graham Stability	-	-	100%	89%	31%	100%	100%	100%	100%	31%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.98.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.07.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.31.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	06-2016	06-2018	06-2020	06-2022	Trend
Revenue	3.3%	4.2%	4.9%	2.3%	-9.2%
Net Income	4.9%	8.7%	4%	-0.62%	3.8%
Stockholders Equity	-2.9%	-2.3%	0.13%	0.45%	1.3%
FCF	1.9%	4.3%	-1.3%	1.6%	-0.54%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.18%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -9.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +8.67%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +3.81%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -2.3%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.29%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +4.34%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.54%.