Colgate Palmolive Intrinsic Value

COLPAL • Consumer Goods
Current Stock Price
₹2089.10
Primary Intrinsic Value
₹1217.50
Market Cap
₹5641 Cr
-26.2% Downside
Median Value
₹1541.67
Value Range
₹627 - ₹5223
Assessment
Trading Above Calculated Value
Safety Margin
-35.5%

COLPAL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹1217.50 ₹974.00 - ₹1461.00 -41.7% EPS: ₹48.70, Sector P/E: 25x
Book Value Method asset ₹1541.67 ₹1387.50 - ₹1695.84 -26.2% Book Value/Share: ₹616.67, P/B: 2.5x
Revenue Multiple Method revenue ₹3305.56 ₹2975.00 - ₹3636.12 +58.2% Revenue/Share: ₹2203.70, P/S: 1.5x
EBITDA Multiple Method earnings ₹4178.20 ₹3760.38 - ₹4596.02 +100.0% EBITDA: ₹1943.00Cr, EV/EBITDA: 12x
Simple DCF (5Y) dcf ₹5222.75 ₹4178.20 - ₹6267.30 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹626.73 ₹564.06 - ₹689.40 -70.0% EPS Growth: 5.3%, Fair P/E: 4.2x
Growth Adjusted P/E growth ₹893.24 ₹803.92 - ₹982.56 -57.2% Revenue Growth: 3.8%, Adj P/E: 18.3x
ROE Based Valuation profitability ₹4178.20 ₹3760.38 - ₹4596.02 +100.0% ROE: 79.6%, P/E Multiple: 16x
Graham Defensive Method conservative ₹822.02 ₹739.82 - ₹904.22 -60.7% EPS: ₹48.70, BVPS: ₹616.67
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check COLPAL share price latest .

Valuation Comparison Chart

COLPAL Intrinsic Value Analysis

What is the intrinsic value of COLPAL?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Colgate Palmolive (COLPAL) is ₹1541.67 (median value). With the current market price of ₹2089.10, this represents a -26.2% variance from our estimated fair value.

The valuation range spans from ₹626.73 to ₹5222.75, indicating ₹626.73 - ₹5222.75.

Is COLPAL undervalued or overvalued?

Based on our multi-method analysis, Colgate Palmolive (COLPAL) appears to be trading above calculated value by approximately 26.2%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 22.90 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.81 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 79.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 31.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 1.97x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,395 Cr ₹1,395 Cr Positive Free Cash Flow 8/10
March 2024 ₹1,199 Cr ₹1,199 Cr Positive Free Cash Flow 8/10
March 2023 ₹1,176 Cr ₹1,172 Cr Positive Free Cash Flow 8/10
March 2022 ₹1,626 Cr ₹1,572 Cr Positive Free Cash Flow 8/10
March 2021 ₹784 Cr ₹784 Cr Positive Free Cash Flow 8/10