DCF Tool

CL

Colgate-Palmolive Co. – Soap and Other Detergent Manufacturing
About Colgate-Palmolive: Colgate-Palmolive Company is a caring, innovative growth company reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, the Company sells its products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom's of Maine, eltaMD, Filorga, Irish Spring, PCA Skin, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill's Science Diet and Hill's Prescription Diet. The Company is recognized for its leadership and innovation in promoting environmental sustainability and community well-being, including its achievements in saving water, reducing waste, promoting recyclability and improving children's oral health through its Bright Smiles, Bright Futures program, which has reached more than one billion children since 1991.
Analysis Results
Intrinsic Value $120.10
Latest Price $78.16
Relative Value 35% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 3.18 3.05
2023 3.31 3.03
2024 3.44 3.01
2025 3.57 3.0
2026 3.71 2.98
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 111 billion. This corresponds to a present value of 85.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 15.1 billion. Adding in the terminal value gives a total present value of 101 billion.

There are presently 838.0 million outstanding shares, so the intrinsic value per share is 120.1.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,397,000,000
Current Cash 832,000,000
Current Liabilities 4,051,000,000
Current Debt 51,000,000
Non-Cash Working Capital (NCWC) -435,000,000
Change in NCWC 252,000,000
EBIT 3,891,000,000
Tax Provision 749,000,000
Depreciation and Amortization 556,000,000
Capital Expenditure -567,000,000
Unlevered Free Cash Flow 3,187,925,170
Current Assets 4,338,000,000
Current Cash 888,000,000
Current Liabilities 4,404,000,000
Current Debt 267,000,000
Non-Cash Working Capital (NCWC) -687,000,000
Change in NCWC -436,000,000
EBIT 3,922,000,000
Tax Provision 787,000,000
Depreciation and Amortization 539,000,000
Capital Expenditure -410,000,000
Unlevered Free Cash Flow 2,768,656,704
Current Assets 4,179,000,000
Current Cash 906,000,000
Current Liabilities 4,038,000,000
Current Debt 514,000,000
Non-Cash Working Capital (NCWC) -251,000,000
Change in NCWC 21,000,000
EBIT 3,697,000,000
Tax Provision 774,000,000
Depreciation and Amortization 519,000,000
Capital Expenditure -335,000,000
Unlevered Free Cash Flow 3,035,148,136
Current Assets 3,793,000,000
Current Cash 736,000,000
Current Liabilities 3,341,000,000
Current Debt 12,000,000
Non-Cash Working Capital (NCWC) -272,000,000
Change in NCWC 35,000,000
EBIT 3,793,000,000
Tax Provision 906,000,000
Depreciation and Amortization 511,000,000
Capital Expenditure -436,000,000
Unlevered Free Cash Flow 2,910,950,923
Current Assets 4,639,000,000
Current Cash 1,549,000,000
Current Liabilities 3,408,000,000
Current Debt 11,000,000
Non-Cash Working Capital (NCWC) -307,000,000
Change in NCWC -15,000,000
EBIT 3,783,000,000
Tax Provision 1,313,000,000
Depreciation and Amortization 475,000,000
Capital Expenditure -553,000,000
Unlevered Free Cash Flow 2,265,543,733
Current Assets 4,338,000,000
Current Cash 1,338,000,000
Current Liabilities 3,305,000,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) -292,000,000
Change in NCWC -413,000,000
EBIT 3,851,000,000
Tax Provision 1,152,000,000
Depreciation and Amortization 443,000,000
Capital Expenditure -593,000,000
Unlevered Free Cash Flow 2,101,174,959
Current Assets 4,384,000,000
Current Cash 1,031,000,000
Current Liabilities 3,534,000,000
Current Debt 302,000,000
Non-Cash Working Capital (NCWC) 121,000,000
Change in NCWC -11,000,000
EBIT 3,910,000,000
Tax Provision 1,215,000,000
Depreciation and Amortization 449,000,000
Capital Expenditure -691,000,000
Unlevered Free Cash Flow 1,937,618,892
Current Assets 4,863,000,000
Current Cash 1,289,000,000
Current Liabilities 3,946,000,000
Current Debt 504,000,000
Non-Cash Working Capital (NCWC) 132,000,000
Change in NCWC 7,000,000
EBIT 4,102,000,000
Tax Provision 1,194,000,000
Depreciation and Amortization 442,000,000
Capital Expenditure -757,000,000
Unlevered Free Cash Flow 2,407,702,802
Current Assets 4,822,000,000
Current Cash 1,135,000,000
Current Liabilities 4,470,000,000
Current Debt 908,000,000
Non-Cash Working Capital (NCWC) 125,000,000
Change in NCWC 1,000,000
EBIT 3,951,000,000
Tax Provision 1,155,000,000
Depreciation and Amortization 439,000,000
Capital Expenditure -670,000,000
Unlevered Free Cash Flow 2,440,942,496
Current Assets 4,556,000,000
Current Cash 1,000,000,000
Current Liabilities 3,736,000,000
Current Debt 304,000,000
Non-Cash Working Capital (NCWC) 124,000,000
Change in NCWC 8,000,000
EBIT 3,978,000,000
Tax Provision 1,243,000,000
Depreciation and Amortization 425,000,000
Capital Expenditure -565,000,000
Unlevered Free Cash Flow 2,569,630,872

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