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PG

Procter & Gamble Co. – Soap and Other Detergent Manufacturing
The Procter & Gamble Company is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble.
Analysis Results
Intrinsic Value $186.48
Latest Price $159.56
Relative Value 14% 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 4.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.8%, 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)
2024 14.0 13.3
2025 14.6 13.2
2026 15.3 13.1
2027 16.1 13.0
2028 16.8 13.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 511 billion. This corresponds to a present value of 373 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 65.6 billion. Adding in the terminal value gives a total present value of 439 billion.

There are presently 2.35 billion outstanding shares, so the intrinsic value per share is 186.48.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 22,648,000,000
Current Cash 8,246,000,000
Current Liabilities 35,756,000,000
Current Debt 10,229,000,000
Non-Cash Working Capital (NCWC) -11,125,000,000
Change in NCWC -1,128,000,000
EBIT 18,134,000,000
Tax Provision 3,615,000,000
Depreciation and Amortization 2,714,000,000
Capital Expenditure -3,062,000,000
Unlevered Free Cash Flow 13,086,136,544
Current Assets 21,653,000,000
Current Cash 7,214,000,000
Current Liabilities 33,081,000,000
Current Debt 8,645,000,000
Non-Cash Working Capital (NCWC) -9,997,000,000
Change in NCWC 1,443,000,000
EBIT 17,813,000,000
Tax Provision 3,202,000,000
Depreciation and Amortization 2,807,000,000
Capital Expenditure -3,156,000,000
Unlevered Free Cash Flow 15,737,384,773
Current Assets 23,091,000,000
Current Cash 10,288,000,000
Current Liabilities 33,132,000,000
Current Debt 8,889,000,000
Non-Cash Working Capital (NCWC) -11,440,000,000
Change in NCWC -1,453,000,000
EBIT 17,986,000,000
Tax Provision 3,263,000,000
Depreciation and Amortization 2,735,000,000
Capital Expenditure -2,787,000,000
Unlevered Free Cash Flow 13,149,276,014
Current Assets 27,987,000,000
Current Cash 16,181,000,000
Current Liabilities 32,976,000,000
Current Debt 11,183,000,000
Non-Cash Working Capital (NCWC) -9,987,000,000
Change in NCWC -1,859,000,000
EBIT 15,706,000,000
Tax Provision 2,731,000,000
Depreciation and Amortization 3,013,000,000
Capital Expenditure -3,073,000,000
Unlevered Free Cash Flow 11,078,077,049
Current Assets 22,473,000,000
Current Cash 10,287,000,000
Current Liabilities 30,011,000,000
Current Debt 9,697,000,000
Non-Cash Working Capital (NCWC) -8,128,000,000
Change in NCWC -1,784,000,000
EBIT 13,832,000,000
Tax Provision 2,103,000,000
Depreciation and Amortization 2,824,000,000
Capital Expenditure -3,347,000,000
Unlevered Free Cash Flow 6,732,003,460
Current Assets 23,320,000,000
Current Cash 11,850,000,000
Current Liabilities 28,237,000,000
Current Debt 10,423,000,000
Non-Cash Working Capital (NCWC) -6,344,000,000
Change in NCWC -1,045,000,000
EBIT 13,711,000,000
Tax Provision 3,465,000,000
Depreciation and Amortization 2,834,000,000
Capital Expenditure -3,717,000,000
Unlevered Free Cash Flow 8,217,893,066
Current Assets 26,494,000,000
Current Cash 15,137,000,000
Current Liabilities 30,210,000,000
Current Debt 13,554,000,000
Non-Cash Working Capital (NCWC) -5,299,000,000
Change in NCWC -6,616,000,000
EBIT 13,955,000,000
Tax Provision 3,063,000,000
Depreciation and Amortization 2,820,000,000
Capital Expenditure -3,384,000,000
Unlevered Free Cash Flow 3,550,728,671
Current Assets 33,782,000,000
Current Cash 13,348,000,000
Current Liabilities 30,770,000,000
Current Debt 11,653,000,000
Non-Cash Working Capital (NCWC) 1,317,000,000
Change in NCWC 1,052,000,000
EBIT 13,441,000,000
Tax Provision 3,342,000,000
Depreciation and Amortization 3,078,000,000
Capital Expenditure -3,314,000,000
Unlevered Free Cash Flow 10,897,001,346
Current Assets 29,646,000,000
Current Cash 11,612,000,000
Current Liabilities 29,790,000,000
Current Debt 12,021,000,000
Non-Cash Working Capital (NCWC) 265,000,000
Change in NCWC -2,546,000,000
EBIT 13,818,000,000
Tax Provision 2,916,000,000
Depreciation and Amortization 3,134,000,000
Capital Expenditure -3,736,000,000
Unlevered Free Cash Flow 7,268,574,371
Current Assets 31,617,000,000
Current Cash 10,686,000,000
Current Liabilities 33,726,000,000
Current Debt 15,606,000,000
Non-Cash Working Capital (NCWC) 2,811,000,000
Change in NCWC 2,373,000,000
EBIT 15,288,000,000
Tax Provision 3,178,000,000
Depreciation and Amortization 3,141,000,000
Capital Expenditure -3,848,000,000
Unlevered Free Cash Flow 13,689,958,078
Current Assets 23,990,000,000
Current Cash 5,947,000,000
Current Liabilities 30,037,000,000
Current Debt 12,432,000,000
Non-Cash Working Capital (NCWC) 438,000,000
Change in NCWC -827,000,000
EBIT 14,789,000,000
Tax Provision 3,441,000,000
Depreciation and Amortization 2,982,000,000
Capital Expenditure -4,008,000,000
Unlevered Free Cash Flow 9,507,518,628
Current Assets 21,910,000,000
Current Cash 4,436,000,000
Current Liabilities 24,907,000,000
Current Debt 8,698,000,000
Non-Cash Working Capital (NCWC) 1,265,000,000
Change in NCWC -625,000,000
EBIT 14,868,000,000
Tax Provision 3,468,000,000
Depreciation and Amortization 3,204,000,000
Capital Expenditure -3,964,000,000
Unlevered Free Cash Flow 9,449,975,048

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