Market Pulse59Neutral

Colgate-Palmolive CompanyOpportunity Rank #179(CL) Intrinsic Value & DCF Analysis (2026)

Current Price

$87.36

Last updated: May 08, 2026

Price vs Intrinsic Value

$87.36
Price
$86.67
Intrinsic Value
Overvalued by 1%MOS: $69.34

Fundamental Score

47/100
Bearish

Weighted across 6 signals

Narrative Score

75/100
Strong

-1 vs previous

Trend Score

49/100
Neutral

As of 2026-05-08

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 $87.36, 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 $87.36, 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
▼ -0.79% downside
20% margin of safety: $69.34
Years: 10Growth Rate: 1.80%
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Capital Efficiency

Average Quarterly ROIC
8.43%
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

47/100
BearishWeighted across 6 signals
DCF Discount
0.8% premium to price
49
FCF Yield
7.0% trailing FCF yield
100
ROIC vs WACC
ROIC 8.4% vs WACC 11.0% (0.8x)
38
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

75/100
Strong
-1 vs previous · +1 new driversVs 6-Month Baseline:High (82nd pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 87%Updated: 17h ago
Sources: 94 (80 News · 14 Analyst)
Drivers(last 30 days)
40 news sentiment+1.0
33 regulatory scrutiny+0.5
2 upgrade headlines+0.4
Margin pressure+0.3
2 earnings beat+0.3
3 analyst upgrades+0.1

Trend Details

49/100
NeutralAs of 2026-05-08311 daily bars used
3M Relative Strength vs SPY-14.1%
Distance from 52-Week High-11.7%
6M Relative Strength vs SPY+5.0%
Price vs 21 EMA62 · +2.0%
Price vs 50 EMA57 · +1.4%
21 EMA vs 50 EMA45 · -0.6%
3M RS vs SPY9 · -14.1%
6M RS vs SPY63 · +5.0%
Distance from 52W High77 · -11.7%

Investment Coach

Updating... 1d ago
WATCHConfidence: 41%
Thesis
Colgate-Palmolive Company shows a strong narrative score and healthy free cash flow yield of 7.0%, indicating underlying business strength despite valuation being close to fair value. However, returns are currently trailing the estimated cost of capital, suggesting caution and patience in investment timing.
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 shareholder returns.
Signals To Watch
  • Watch for the stock price to move to at least a mid-teens discount to fair value.
  • Track the ROIC versus WACC spread for sustained improvement.
  • Follow the narrative trend for meaningful shifts in the 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

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.