We publish no single base value for Colgate-Palmolive. Our valuation methods put it between $76.80 and $117.28 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $117.28 | +19.8% | free cash flow $3.79bn, growth 4.6% for 5 years, then fading to 3% over 5 more, discounted at 7.61%; stress floor $70.93 |
| Exit multiple (P/E) | $76.80 | -21.6% | earnings per share $3.92 valued at 23.25× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 0.31 (5 years of monthly returns against the S&P 500; standard error 0.16) |
| Peer beta | 0.38 (median of 31 S&P 500 Consumer Staples companies) |
| Blend of own and peers | 0.33 (74% own, 26% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 0.55 (0.67 × 0.33 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 7.61% |
Free cash flow grows 4.60% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $3.79bn | — | — |
| Year 1 | 4.60% | $3.96bn | 0.9293 | $3.68bn |
| Year 2 | 4.60% | $4.15bn | 0.8636 | $3.58bn |
| Year 3 | 4.60% | $4.34bn | 0.8026 | $3.48bn |
| Year 4 | 4.60% | $4.54bn | 0.7459 | $3.38bn |
| Year 5 | 4.60% | $4.74bn | 0.6932 | $3.29bn |
| Year 6 | 4.33% | $4.95bn | 0.6442 | $3.19bn |
| Year 7 | 4.07% | $5.15bn | 0.5986 | $3.08bn |
| Year 8 | 3.80% | $5.35bn | 0.5563 | $2.97bn |
| Year 9 | 3.53% | $5.54bn | 0.5170 | $2.86bn |
| Year 10 | 3.27% | $5.72bn | 0.4805 | $2.75bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (7.61% − 3%) | $127.87bn |
| Terminal value in today's money | $61.44bn |
| Present value of years 1–10 | $32.27bn |
| Total present value | $93.71bn |
| Shares outstanding | 799.00m |
| Value per share = total ÷ shares | $117.28 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth -0.4% | Growth 4.6% | Growth 9.6% |
|---|---|---|---|
| 6.61% | $108.50 | $150.27 | $206.67 |
| 7.61% | $85.53 | $117.28 | — |
| 8.61% | $70.73 | $96.09 | — |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 0.31 | 6.53% | — |
| Peer beta | 0.38 | 6.84% | $140.97 |
| Adjusted beta (used) | 0.55 | 7.61% | $117.28 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $3.92 |
| Year 1 | 4.60% | $4.10 |
| Year 2 | 4.20% | $4.27 |
| Year 3 | 3.90% | $4.44 |
| Year 4 | 3.67% | $4.60 |
| Year 5 | 3.51% | $4.77 |
| Earnings per share in year 5 | $4.77 |
| Exit P/E (the stock's own median P/E) | 23.25× |
| Value in 5 years = earnings × P/E | $110.79 |
| Discounted at 7.61% over 5 years: ÷ 1.4427 | $76.80 |
We publish no single base value for Colgate-Palmolive. Our valuation methods put it between $76.80 and $117.28 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $76.85 and a 10% chance it is above $137.46 in a year; a 59% chance it is higher than today's $97.90, from 22.57% volatility. The simulation assumes the price drifts up at our discount rate of 7.61% a year.
At $97.90 the price implies free cash flow growing 1.7% a year for five years and then fading toward 3% over five more; its revenue has grown 4.6%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $84.26 | — |
| 9 Oct 2026 | $88.27 | — |
| 16 Oct 2026 | $94.11 | — |
| 23 Oct 2026 | $94.04 | — |
| 30 Oct 2026 | $95.29 | — |
| 6 Nov 2026 | $96.56 | — |
| 12 Nov 2026 | $97.90 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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