Market Pulse44Neutral

Colgate-Palmolive CompanyOpportunity Rank #204(CL) Intrinsic Value & DCF Analysis (2026)

Current Price

$88.67

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$88.67
Price
$86.67
Intrinsic Value
Overvalued by 2%MOS: $69.34

Fundamental Score

46/100
Bearish

Weighted across 6 signals

Narrative Score

55/100
Improving

-1 vs previous

Trend Score

47/100
Neutral

As of 2026-06-22

The intrinsic value of Colgate-Palmolive Company (CL) is estimated at $86.67 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $88.67, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 1.80% long-term growth rate and an 8.50% discount rate (calculated: 7.29%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Colgate-Palmolive Company (CL) is estimated at $86.67 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $88.67, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 1.80% long-term growth rate and an 8.50% discount rate (calculated: 7.29%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$86.67
-2.26% downside
20% margin of safety: $69.34
Years: 10Growth Rate: 1.80%
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Capital Efficiency

Average Quarterly ROIC
7.85%
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

46/100
BearishWeighted across 6 signals
DCF Discount
2.3% premium to price
46
FCF Yield
6.9% trailing FCF yield
100
ROIC vs WACC
ROIC 7.9% vs WACC 11.0% (0.7x)
36
Net Debt / FCF
1.3x net debt to FCF
50
Buybacks
Share count growing
30
FCF CAGR (5Y)
3.6% 5Y FCF CAGR
25
Strengths: FCF Yield. Concerns: ROIC vs WACC, Buybacks.

Narrative Details

55/100
Improving
-1 vs previousVs 6-Month Baseline:Low (17th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 85%Updated: 4m ago
Sources: 59 (45 News · 14 Analyst)
Drivers(last 30 days)
34 news sentiment+0.5
3 margin pressure+0.1
2 upgrade headlines+0.0
Earnings beat+0.0
3 analyst upgrades+0.0
5 regulatory scrutiny+0.0

Trend Details

47/100
NeutralAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-10.6%
Distance from 52-Week High-10.6%
21 EMA vs 50 EMA+0.8%
Price vs 21 EMA48 · -0.3%
Price vs 50 EMA53 · +0.5%
21 EMA vs 50 EMA57 · +0.8%
3M RS vs SPY15 · -10.6%
6M RS vs SPY51 · +0.3%
Distance from 52W High79 · -10.6%

Investment Coach

Updating... 12d ago
WATCHConfidence: 48%
Thesis
Colgate-Palmolive Company currently trades near fair value with a healthy free cash flow yield of 6.8%, but its returns are trailing the estimated cost of capital, suggesting cautious patience. The company's fundamentals show a bearish score with a negative ROIC versus WACC spread, indicating challenges in generating returns above its cost of capital.
Key Risk
The primary risk is the sustained negative spread between ROIC and WACC, which may continue to pressure returns and valuation.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value.
  • Improvement in ROIC versus WACC spread.
  • Meaningful shifts in the narrative trend and score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.80%5 Year CAGR: 4.81%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$4,923$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

Operating globally, Colgate-Palmolive Company and its affiliated entities are engaged in the production and distribution of a diverse range of consumer goods. Its operations are structured into two primary divisions: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care division encompasses a broad array of offerings, spanning oral hygiene (e.g., toothpastes, toothbrushes, mouthwashes), personal care (e.g., bar and liquid soaps, shower gels, shampoos, conditioners, deodorants, antiperspirants, skin health items), and home care solutions (e.g., dishwashing detergents, fabric conditioners, household cleaners). These products are distributed through various channels, including traditional and online retailers, wholesalers, and distributors, under well-known brand names such as 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. Furthermore, this segment supplies specialized pharmaceutical products to dentists and other professionals in oral healthcare. Conversely, the Pet Nutrition segment focuses on providing specialized pet food. This includes everyday nutritional options marketed under the Hill's Science Diet brand, as well as therapeutic diets designed to assist in managing various health conditions in dogs and cats, sold under the Hill's Prescription Diet brand. Distribution for these pet nutrition items occurs via pet supply stores, veterinary clinics, and online retail platforms. Established in 1806, Colgate-Palmolive Company maintains its corporate headquarters in New York, New York.