Market Pulse50Neutral

Colgate-Palmolive CompanyOpportunity Rank #190(CL) Intrinsic Value & DCF Analysis (2026)

Current Price

$85.15

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$85.15
Price
$83.17
Intrinsic Value
Overvalued by 2%MOS: $66.54

Fundamental Score

51/100
Neutral

Weighted across 6 signals

Narrative Score

67/100
Improving

No change vs previous

The intrinsic value of Colgate-Palmolive Company (CL) is estimated at $83.17 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $85.15, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 1.76% long-term growth rate and an 8.50% discount rate (calculated: 7.28%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Colgate-Palmolive Company (CL) is estimated at $83.17 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $85.15, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 1.76% long-term growth rate and an 8.50% discount rate (calculated: 7.28%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$83.17
-2.33% downside
20% margin of safety: $66.54
Years: 10Growth Rate: 1.76%
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Capital Efficiency

Average Quarterly ROIC
7.78%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

51/100
NeutralWeighted across 6 signals
DCF Discount
2.3% premium to price
46
FCF Yield
7.0% trailing FCF yield
100
ROIC vs WACC
ROIC 7.8% vs WACC 11.0% (0.7x)
35
Net Debt / FCF
1.4x net debt to FCF
48
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
2.9% 5Y FCF CAGR
25
Strengths: FCF Yield, Buybacks. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

67/100
Improving
Vs 6-Month Baseline:Average (45th pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 85%Updated: 1h ago
Sources: 100 (85 News · 15 Analyst)
Drivers(last 30 days)
29 regulatory scrutiny+0.8
52 news sentiment+0.8
Upgrade headlines+0.0
3 earnings beat+0.0
2 analyst upgrades+0.0
13 analyst reiterations0.0

Investment Coach

Updated 11h ago
WATCHConfidence: 41%
Thesis
Colgate-Palmolive Company currently trades near fair value with a healthy free cash flow yield of 7.0%, supported by a positive narrative score. However, returns are trailing the estimated cost of capital, suggesting cautious patience is warranted.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining below its weighted average cost of capital (WACC), which could pressure valuation and returns.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • Sustained improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative score direction
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.76%5 Year CAGR: 4.12%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$4,762$4,762$4,668$4,450$3,252$3,892$4,129$3,468$3,492$3,607$3,734$3,640$4,055$3,874$3,761$3,433$3,761$3,852$2,986$2,787$2,298

How Intrinziq Estimates Fair Value

Intrinziq estimates Colgate-Palmolive Company's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Colgate-Palmolive CompanyConsumer Defensive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly to a range of traditional and eCommerce retailers, wholesalers, and distributors. It also includes pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic products to manage disease conditions in dogs and cats under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.