Using the industry peer median P/E multiple (trailing + forward), The Procter & Gamble Company (PG) has a fair value of $142.48 based on 7 comparable companies in the Household & Personal Products industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Procter & Gamble CompanyPG | 350,194 | 21.9x | 20.5x |
| Costco Wholesale CorporationCOST | 435,898 | 54.0x | 48.1x |
| The Coca-Cola CompanyKO | 322,705 | 24.7x | 23.2x |
| Philip Morris International Inc.PM | 254,611 | 22.5x | 19.4x |
| Colgate-Palmolive CompanyCL | 67,887 | 32.2x | 21.9x |
| Kenvue Inc.KVUE | 33,610 | 23.1x | 15.4x |
| Kimberly-Clark CorporationKMB | 32,753 | 16.3x | 13.1x |
| The Clorox CompanyCLX | 12,547 | 15.8x | 17.4x |
| Industry Median | 23.1x | 19.4x | |
| (*) Profit after tax | 15,974 | 17,088 | |
| Equity Value | 368,558 | 330,833 | |
| (/) Outstanding shares | 2,454 | 2,454 | |
| Fair Price | $150 | $135 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.