The Procter & Gamble Company

Consumer DefensiveHousehold & Personal ProductsNYSE

$146.06

Market Cap: $340.12B

The Procter & Gamble Company (PG) Valuation Summary

Updated May 11, 2026 19:03

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$86.86 – $445.01	$145.42	-0.4%
Growth Exit 10Y	$91.34 – $431.68	$147.74	+1.2%
EBITDA Exit 5Y	$119.47 – $213.67	$162.75	+11.4%
EBITDA Exit 10Y	$115.80 – $223.53	$162.09	+11.0%
▸ Trading Multiples
P/E	$105.41 – $216.66	$147.16	+0.8%
EV/EBITDA	$112.14 – $183.70	$159.33	+9.1%
EV/Revenue	$56.43 – $251.88	$83.01	-43.2%
▸ PEG
PEG Fair Value	$58.17 – $58.17	$58.17	-60.2%
▸ Earnings Power Value
Earnings Power Value	$63.42 – $104.14	$79.38	-45.6%
▸ Dividend Discount
Dividend Discount	$62.38 – $176.14	$95.70	-34.5%

Valuation History

DCF Analysis

Fair Value

$145.42

Market Price

$146.06

Upside / Downside

-0.4%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Procter & Gamble Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.1% to 4.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 25, DPO 132, DIO 62). At a 7.0% WACC with mid-year discounting, the terminal value (81% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $145.42 per share, suggesting PG is fairly valued by 0.4% at the current price of $146.06.

FCFF Present Value Calculation

WACC

6.95%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	19,390	19,912	20,566	21,568	22,431	22,991
(−) Net Interest	748	768	794	832	866	887
(+) D&A	3,220	3,349	3,423	3,540	3,639	3,730
EBITDA	23,358	24,029	24,783	25,939	26,935	27,609

(−) Tax	3,744	3,845	3,971	4,164	4,331	4,439
(−) CapEx	3,434	3,526	3,642	3,820	3,972	4,072
(−) ΔWC	-920	-65	-81	-124	-107	-110
Free Cash Flow (FCFF)	17,100	16,723	17,252	18,080	18,739	19,208

Terminal Value						431,618
WACC / Discount Rate	7.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	16,535	15,120	14,584	14,291	13,850	308,455

Enterprise Value	382,835
Projection Period	74,380	19.4%
Terminal Value	308,455	80.6%

(−) Current Net Debt	25,907

Equity Value	356,928
(/) Outstanding Shares	2,454

Fair Price	$145.42

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.0%	$199	$230	$272	$336	$445
6.0%	$152	$169	$190	$219	$260
7.0%	$122	$133	$145	$161	$182
8.0%	$102	$109	$117	$127	$139
9.0%	$87	$92	$97	$104	$112

Current price: $146.06. Green = undervalued, Red = overvalued.

Fair Value

$147.74

Market Price

$146.06

Upside / Downside

+1.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Procter & Gamble Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.1% to 2.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 25, DPO 132, DIO 62). At a 7.0% WACC with mid-year discounting, the terminal value (65% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $147.74 per share, suggesting PG is fairly valued by 1.2% at the current price of $146.06.

FCFF Present Value Calculation

WACC

6.95%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	19,390	19,912	20,566	21,568	22,431	23,025	23,652	24,311	25,007	25,740	26,383
(−) Net Interest	748	768	794	832	866	889	913	938	965	993	1,018
(+) D&A	3,220	3,349	3,423	3,540	3,639	3,679	3,808	3,940	4,073	4,195	4,300
EBITDA	23,358	24,029	24,783	25,939	26,935	27,593	28,372	29,190	30,045	30,927	31,701

(−) Tax	3,744	3,845	3,971	4,164	4,331	4,446	4,567	4,694	4,828	4,970	5,094
(−) CapEx	3,434	3,526	3,642	3,820	3,972	4,078	4,189	4,306	4,429	4,558	4,672
(−) ΔWC	-920	-65	-81	-124	-107	-74	-78	-82	-86	-91	-93
Free Cash Flow (FCFF)	17,100	16,723	17,252	18,080	18,739	19,143	19,694	20,272	20,874	21,490	22,027

Terminal Value											494,982
WACC / Discount Rate	7.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	16,535	15,120	14,584	14,291	13,850	13,229	12,725	12,247	11,791	11,351	252,799

Enterprise Value	388,521
Projection Period	135,723	34.9%
Terminal Value	252,799	65.1%

(−) Current Net Debt	25,907

Equity Value	362,614
(/) Outstanding Shares	2,454

Fair Price	$147.74

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.0%	$210	$238	$276	$334	$432
6.0%	$160	$175	$193	$218	$253
7.0%	$129	$137	$148	$161	$178
8.0%	$107	$113	$119	$127	$136
9.0%	$91	$95	$99	$104	$110

Current price: $146.06. Green = undervalued, Red = overvalued.

Fair Value

$162.76

Market Price

$146.06

Upside / Downside

+11.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Procter & Gamble Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.1% to 4.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 25, DPO 132, DIO 62). At a 7.0% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $162.75 per share, suggesting PG is fairly valued by 11.4% at the current price of $146.06.

FCFF Present Value Calculation

WACC

6.95%

3% – 20%

EV/EBITDA Exit Multiple

17.79x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	19,390	19,912	20,566	21,568	22,431	22,991
(−) Net Interest	748	768	794	832	866	887
(+) D&A	3,220	3,349	3,423	3,540	3,639	3,730
EBITDA	23,358	24,029	24,783	25,939	26,935	27,609

(−) Tax	3,744	3,845	3,971	4,164	4,331	—
(−) CapEx	3,434	3,526	3,642	3,820	3,972	—
(−) ΔWC	-920	-65	-81	-124	-107	—
Free Cash Flow (FCF)	17,100	16,723	17,252	18,080	18,739	—

Peers' EBITDA Multiple						17.8x
Terminal Value						491,159
WACC / Discount Rate	6.95%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	16,535	15,120	14,584	14,291	13,850	351,006

Enterprise Value	425,386
Projection Period	74,380	17.5%
Terminal Value	351,006	82.5%

(−) Current Net Debt	25,907
Equity Value	399,479
(÷) Outstanding Shares	2454M
Fair Price	$163	+11.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	13.8x	15.8x	17.8x	19.8x	21.8x
5.0%	$143	$161	$178	$196	$214
6.0%	$137	$153	$170	$187	$204
7.0%	$131	$147	$163	$179	$195
8.0%	$125	$140	$156	$171	$186
9.0%	$119	$134	$149	$163	$178

Current price: $146.06. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$162.09

Market Price

$146.06

Upside / Downside

+11.0%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Procter & Gamble Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.1% to 2.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 25, DPO 132, DIO 62). At a 7.0% WACC with mid-year discounting, the terminal value (68% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $162.09 per share, suggesting PG is fairly valued by 11.0% at the current price of $146.06.

FCFF Present Value Calculation

WACC

6.95%

3% – 20%

EV/EBITDA Exit Multiple

17.79x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	19,390	19,912	20,566	21,568	22,431	23,025	23,652	24,311	25,007	25,740	26,383
(−) Net Interest	748	768	794	832	866	889	913	938	965	993	1,018
(+) D&A	3,220	3,349	3,423	3,540	3,639	3,679	3,808	3,940	4,073	4,195	4,300
EBITDA	23,358	24,029	24,783	25,939	26,935	27,593	28,372	29,190	30,045	30,927	31,701

(−) Tax	3,744	3,845	3,971	4,164	4,331	4,446	4,567	4,694	4,828	4,970	—
(−) CapEx	3,434	3,526	3,642	3,820	3,972	4,078	4,189	4,306	4,429	4,558	—
(−) ΔWC	-920	-65	-81	-124	-107	-74	-78	-82	-86	-91	—
Free Cash Flow (FCF)	17,100	16,723	17,252	18,080	18,739	19,143	19,694	20,272	20,874	21,490	—

Peers' EBITDA Multiple											17.8x
Terminal Value											563,954
WACC / Discount Rate	6.95%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	16,535	15,120	14,584	14,291	13,850	13,229	12,725	12,247	11,791	11,351	288,024

Enterprise Value	423,747
Projection Period	135,723	32.0%
Terminal Value	288,024	68.0%

(−) Current Net Debt	25,907
Equity Value	397,840
(÷) Outstanding Shares	2454M
Fair Price	$162	+11.0%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	13.8x	15.8x	17.8x	19.8x	21.8x
5.0%	$160	$176	$192	$208	$224
6.0%	$147	$162	$176	$191	$205
7.0%	$136	$149	$162	$175	$188
8.0%	$125	$137	$149	$161	$173
9.0%	$116	$127	$138	$149	$160

Current price: $146.06. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$147.16

Market Price

$146.06

Upside / Downside

+0.8%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), The Procter & Gamble Company (PG) has a fair value of $147.16 based on 7 comparable companies in the Household & Personal Products industry.

P/E Valuation — Household & Personal Products

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
The Procter & Gamble CompanyPG	358,490	22.4x	21.1x
Costco Wholesale CorporationCOST	447,553	55.4x	49.4x
The Coca-Cola CompanyKO	337,531	25.8x	24.1x
Philip Morris International Inc.PM	266,685	23.6x	20.4x
Colgate-Palmolive CompanyCL	70,057	33.3x	23.0x
Kenvue Inc.KVUE	33,771	23.1x	14.9x
Kimberly-Clark CorporationKMB	32,633	16.2x	13.1x
The Clorox CompanyCLX	11,144	14.1x	16.4x
Industry Median		23.6x	20.4x
(*) Profit after tax		15,974	16,959
Equity Value		376,489	345,914
(/) Outstanding shares		2,454	2,454
Fair Price		$153	$141

Selected Fair Value (avg of trailing + forward)

$147.16

+0.8%

Fair Value

$159.33

Market Price

$146.06

Upside / Downside

+9.1%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), The Procter & Gamble Company (PG) has a fair value of $159.33 based on 7 comparable companies in the Household & Personal Products industry.

EV/EBITDA Valuation — Household & Personal Products

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
The Procter & Gamble CompanyPG	358,490	16.1x	15.6x
Costco Wholesale CorporationCOST	447,553	33.0x	30.4x
The Coca-Cola CompanyKO	337,531	19.9x	19.5x
Philip Morris International Inc.PM	266,685	17.8x	16.6x
Colgate-Palmolive CompanyCL	70,057	19.4x	18.5x
Kenvue Inc.KVUE	33,771	14.0x	13.6x
Kimberly-Clark CorporationKMB	32,633	12.6x	12.4x
The Clorox CompanyCLX	11,144	9.9x	10.5x
Industry Median		17.8x	16.6x
(*) EBITDA		23,921	24,660
= Enterprise Value		425,529	408,421
(-) Net Debt		25,907	25,907
Equity Value		399,622	382,514
(/) Outstanding shares		2,454	2,454
Fair Price		$163	$156

Selected Fair Value (avg of trailing + forward)

$159.33

+9.1%

Fair Value

$83.01

Market Price

$146.06

Upside / Downside

-43.2%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Procter & Gamble Company (PG) has a fair value of $83.01 based on 7 comparable companies in the Household & Personal Products industry.

EV/Revenue Valuation — Household & Personal Products

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Procter & Gamble CompanyPG	358,490	4.6x	4.4x
Costco Wholesale CorporationCOST	447,553	1.6x	1.5x
The Coca-Cola CompanyKO	337,531	7.8x	7.6x
Philip Morris International Inc.PM	266,685	7.6x	7.1x
Colgate-Palmolive CompanyCL	70,057	3.8x	3.6x
Kenvue Inc.KVUE	33,771	2.7x	2.6x
Kimberly-Clark CorporationKMB	32,633	2.3x	2.2x
The Clorox CompanyCLX	11,144	2.0x	2.1x
Industry Median		2.7x	2.6x
(*) Revenue		84,284	86,888
= Enterprise Value		229,788	229,508
(-) Net Debt		25,907	25,907
Equity Value		203,881	203,601
(/) Outstanding shares		2,454	2,454
Fair Price		$83	$83

Selected Fair Value (avg of trailing + forward)

$83.01

-43.2%

PEG Fair Value

Fair Value

$58.17

Market Price

$146.06

Upside / Downside

-60.2%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 8.4% plus 2.9% dividend yield, the company has a fair value of $58.17 based on NTM EPS (FY2026) of $6.91. The current PEG ratio is 2.51.

PEG Ratio

2.51Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 21.1 ÷ (5.5% + 2.9%) = 2.51

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateForward	5.5%
Dividend Yield	+2.9%
Adjusted Growth (clamped 8–25%)	8.4%
Fair P/E	8.4x
NTM EPS (FY2026)	$6.91
Fair Value	$58.17

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$6.51	—	—
FY2026E	$6.91	+6.1%	17
FY2027E	$7.14	+3.4%	17
FY2028E	$7.57	+5.9%	15
FY2029E	$8.05	+6.4%	10
FY2030E	$8.51	+5.8%	7

5Y Forward EPS CAGR: 5.5%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$14.3B	$5.50	—
FY2022	$14.7B	$5.81	+5.6%
FY2023	$14.7B	$5.90	+1.5%
FY2024	$14.9B	$6.02	+2.0%
FY2025	$16.0B	$6.51	+8.1%

4Y Historical EPS CAGR: 4.3%

Earnings Power Value

Fair Value

$79.38

Market Price

$146.06

Upside / Downside

-45.6%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.0% and normalized earnings of $15.3B, the company has a fair value of $79.38 per share. The EPV range is $63.42 – $104.14 based on WACC sensitivity (5.5% – 8.5%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	15,342	15,342	15,342
(/) WACC	8.5%	7.0%	5.5%
Enterprise Value	181,563	220,749	281,503
(-) Net debt	25,907	25,907	25,907
Equity Value	155,656	194,842	255,596
(/) Outstanding shares	2,454	2,454	2,454
Fair Price	$63.42	$79.38	$104.14

Dividend Discount Model

Fair Value

$95.70

Market Price

$146.06

Upside / Downside

-34.5%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.5% and projected dividend growth of 5.7%, the fair value is $95.70 per share. The DDM range is $62.38 – $176.14 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$4.02

Dividend Yield

2.90%

Payout Ratio

61.8%

Dividend Coverage

1.62x

FCF Payout Ratio70.3%

DPS CAGR (4Y)6.1%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$4.02	61.8%	+6.8%
2024	$3.77	62.6%	+4.0%
2023	$3.62	61.4%	+4.9%
2022	$3.45	59.5%	+8.7%
2021	$3.18	57.8%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$4.25	5.7%	0.9306	$3.96
2027	$4.50	5.7%	0.8659	$3.89
2028	$4.75	5.7%	0.8058	$3.83
2029	$5.02	5.7%	0.7498	$3.77
2030	$5.31	5.7%	0.6978	$3.71
Terminal Value	$5.44 DPS	2.5%		$76.55

PV of Projected Dividends$19.15

PV of Terminal Value$76.55

Fair Value per Share$95.70

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	3.7%	4.7%	5.7%	6.7%	7.7%
5.5%	$147	$154	$161	$168	$176
6.5%	$110	$115	$120	$126	$131
7.5%	$88	$92	$96	$100	$104
8.5%	$73	$76	$79	$83	$87
9.5%	$62	$65	$68	$71	$74

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.