Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Paying user area
Try for free
Colgate-Palmolive Co. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Colgate-Palmolive Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Current Valuation Ratios
Colgate-Palmolive Co., current price multiples
| Colgate-Palmolive Co. | Procter & Gamble Co. | Consumer Staples | |||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Current share price (P) | |||||
| No. shares of common stock outstanding | |||||
| Growth rate (g) | |||||
| Earnings per share (EPS) | |||||
| Next year expected EPS | |||||
| Operating profit per share | |||||
| Sales per share | |||||
| Book value per share (BVPS) | |||||
| Valuation Ratios (Price Multiples) | |||||
| Price to earnings (P/E) | |||||
| Price to next year expected earnings | |||||
| Price-earnings-growth (PEG) | |||||
| Price to operating profit (P/OP) | |||||
| Price to sales (P/S) | |||||
| Price to book value (P/BV) | |||||
Based on: 10-K (reporting date: 2022-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Colgate-Palmolive Co., historical price multiples
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio showed a general upward trend over the five-year period. It started at 23.95 in 2018, increased to 27.55 in 2019, then experienced a slight decline to 24.79 in 2020. From 2020 onwards, the ratio rose again, reaching 30.71 in 2021 and further increasing to 33.85 in 2022. This indicates growing investor expectations of the company’s future earnings or a higher valuation relative to its earnings over time.
- Price to Operating Profit (P/OP) Ratio
- This ratio generally increased, moving from 15.56 in 2018 to 18.35 in 2019, with a modest decrease to 17.19 in 2020. However, from 2020 through 2022, the ratio climbed steadily, reaching 19.97 in 2021 and 20.89 in 2022. This trend suggests a rising market valuation relative to the company’s operating profit, possibly reflecting improved profitability or positive market perception.
- Price to Sales (P/S) Ratio
- The price to sales ratio exhibited a fluctuating but overall declining trend during the period. Starting at 3.7 in 2018, it rose to 4.16 in 2019 and slightly decreased to 4.06 in 2020. The ratio then decreased further to 3.82 in 2021 and declined more noticeably to 3.36 in 2022. This decline could indicate a reduction in market valuation relative to sales, which might reflect changes in sales growth rates, pricing, margins, or market sentiment.
- Price to Book Value (P/BV) Ratio
- The data for price to book value ratio shows significant volatility and inconsistency in earlier years. There is no available data for 2018, followed by an extremely high and likely anomalous value of 557.38 in 2019. Subsequently, the ratio dropped substantially to 89.9 in 2020, then increased again to 109.24 in 2021 and further to 150.69 in 2022. Such large fluctuations suggest possible accounting changes, revaluations, or market anomalies affecting the company’s book value or stock price in those years.
Price to Earnings (P/E)
Colgate-Palmolive Co., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to Colgate-Palmolive Company (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income attributable to Colgate-Palmolive Company ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Colgate-Palmolive Co. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an upward trend from 66.7 US dollars at the end of 2018 to a peak of 79.15 US dollars at the end of 2021. However, this was followed by a decline to 72.77 US dollars by the end of 2022, indicating some volatility after a generally positive growth phase over the earlier years.
- Earnings Per Share (EPS)
- EPS showed variability over the period. It started at 2.79 US dollars in 2018, experienced a slight decrease to 2.77 US dollars in 2019, then increased markedly to 3.18 US dollars in 2020. After 2020, EPS declined in the subsequent years, falling to 2.58 US dollars in 2021 and further down to 2.15 US dollars by 2022. This suggests some challenges impacting profitability or earnings generation in the more recent years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated significantly, starting at 23.95 in 2018 and increasing to 27.55 in 2019. It then decreased to 24.79 in 2020, before rising sharply in the following years to 30.71 in 2021 and peaking at 33.85 in 2022. The rising P/E ratio in the last two years, despite declining EPS, may indicate market expectations of future growth or reflect investor optimism notwithstanding recent earnings performance.
Price to Operating Profit (P/OP)
Colgate-Palmolive Co., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Colgate-Palmolive Co. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a rising trend from 66.7 US dollars at the end of 2018 to a peak of 79.15 US dollars by the end of 2021. However, a decline to 72.77 US dollars was observed in 2022, marking a reversal from the previous upward movement.
- Operating Profit per Share
- The operating profit per share showed variability over the examined period. It started at 4.29 US dollars in 2018, followed by a slight decrease to 4.16 US dollars in 2019. There was a notable improvement in 2020 to 4.58 US dollars before declining in the subsequent years to 3.96 US dollars in 2021 and further to 3.48 US dollars in 2022.
- Price to Operating Profit Ratio (P/OP)
- This ratio increased steadily over the five-year period. Beginning at 15.56 in 2018, it climbed to 18.35 in 2019 and saw a minor reduction to 17.19 in 2020. It then rose significantly to 19.97 in 2021 and continued its upward trajectory to reach 20.89 by 2022. This indicates that the share price increased relative to the operating profit per share, suggesting higher market expectations or valuation multiples despite the decline in operating profit per share in the later years.
- Summary of Trends
- The data reveal an initial positive momentum in both share price and operating profit per share until 2020, followed by a decline in operating profit per share while the share price remained comparatively stable before falling in 2022. The increasing P/OP ratio over time reflects a divergence between market valuation and the company's operating profit performance, indicating possibly elevated investor sentiment or other market factors influencing share valuation beyond operating profit results.
Price to Sales (P/S)
Colgate-Palmolive Co., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Colgate-Palmolive Co. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a general upward trend from 2018 through 2021, increasing from $66.70 to a peak of $79.15. In 2022, the share price declined to $72.77, indicating a reversal in the prior growth trajectory.
- Sales Per Share Trend
- Sales per share showed a consistent year-over-year increase during the entire period, rising steadily from $18.04 in 2018 to $21.64 in 2022. This reflects continuous growth in sales generated per share.
- Price-to-Sales Ratio (P/S Ratio) Trend
- The P/S ratio peaked in 2019 at 4.16 before gradually declining each year thereafter to 3.36 in 2022. The declining P/S ratio amidst rising sales per share suggests that the market valuation relative to sales has been compressing over recent years, particularly in 2022.
- Overall Insights
- The increase in sales per share across the five-year span demonstrates operational growth and improving sales performance. The initial rise in share price through 2021 aligns with this sales growth; however, the share price decline in 2022 alongside decreasing P/S ratio indicates a potential reduction in market confidence or valuation multiples. This divergence between rising sales and falling valuation ratios may warrant further investigation into external market factors or company-specific risks affecting investor sentiment in 2022.
Price to Book Value (P/BV)
Colgate-Palmolive Co., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Colgate-Palmolive Company shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Total Colgate-Palmolive Company shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Colgate-Palmolive Co. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data reveals several noteworthy trends over the five-year period under review.
- Share Price (US$)
- The share price exhibited an overall upward trend from 66.7 in 2018 to a peak near 79.15 in 2021, reflecting positive market sentiment or company performance during this period. However, there was a decline in 2022 to 72.77, indicating some potential market correction or challenges faced by the company that year.
- Book Value per Share (BVPS) (US$)
- The BVPS showed a transition from a negative value of -0.12 in 2018 to positive territory in 2019, reaching 0.14. It continued to increase notably to 0.88 in 2020, before slightly declining in the subsequent years to 0.72 in 2021 and 0.48 in 2022. This suggests an improvement in the company's net asset value during the initial years followed by a gradual decrease, which may imply asset value depreciation or increased liabilities.
- Price to Book Value Ratio (P/BV, ratio)
- The P/BV ratio data starts from 2019, showing a very high ratio of 557.38 that year, then a dramatic decrease to 89.9 in 2020. The ratio increased again to 109.24 in 2021 and further to 150.69 in 2022. These fluctuations indicate significant market valuation variability relative to the book value, potentially driven by changes in investor expectations or variations in the underlying book value stability.
Overall, while the share price generally trended upward before a recent decline, the company's book value per share improved substantially from negative to positive but has slightly decreased in recent years. The P/BV ratio's volatility reflects changing market perceptions relative to the company's book value, underscoring the importance of monitoring both market price and underlying asset values to assess the company's financial health comprehensively.