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DCF Valuation
Base-case fair value
$73.22
Intrinsic $97.63 · 25% MOS
Current price: $90.58
Base-case summary
Our base-case DCF for Colgate Palmolive Co (CL) projects 10 years of free cash flow growth at 6.4% for years 1–5 and 3.2% for years 6–10, anchored to 6.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $3.8B in trailing free cash flow, this produces an intrinsic value of $97.63 per share. A 25% safety margin gives a fair value of $73.22, suggesting the stock is currently 19% overvalued against the $90.58 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$3.8B
Cash & equivalents
$1.3B
Total debt
$7.9B
Shares outstanding
805M