2026년 2월 11일 · Unknown · financial · 출처 Yahoo Finance
Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.
If you are wondering whether Procter & Gamble's current share price lines up with its underlying worth, you are not alone in asking what you are really paying for with PG today. The stock last closed at US$157.33, with returns of 2.7% over the past 7 days, 10.9% over the last 30 days, 11.0% year to date, and a 3.5% decline over the past year, alongside gains of 21.3% over 3 years and 39.9% over 5 years. Recent attention on Procter & Gamble has been shaped by ongoing interest in large, branded consumer staples companies and how investors treat them during changing market conditions. This context helps frame how the market has reacted to PG relative to other options in the sector and broader indices. Our current valuation work gives Procter & Gamble a valuation score of 4 out of 6, reflecting the checks where it screens as undervalued. Next, we will walk through the key valuation methods behind that result before finishing with a more complete way to think about PG's value story.
Procter & Gamble delivered -3.5% returns over the last year. See how this stacks up to the rest of the Household Products industry.
Approach 1: Procter & Gamble Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those back to a single present value figure.
For Procter & Gamble, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in US$. The company has last twelve month free cash flow of about US$15.4b. Analyst estimates and extrapolated figures point to projected free cash flow of US$23.1b in 2035, with interim years such as 2028 at US$17.5b. Simply Wall St uses analyst inputs for the nearer years and then extends that path to build a 10 year view.
After discounting these projected cash flows, the DCF model arrives at an estimated intrinsic value of US$203.99 per share. Compared with the recent share price of US$157.33, this implies an intrinsic discount of 22.9%. On this DCF view, the shares screen as undervalued.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Procter & Gamble is undervalued by 22.9%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks.PG Discounted Cash Flow as at Feb 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Procter & Gamble.
Story Continues
Approach 2: Procter & Gamble Price vs Earnings
For a consistently profitable business, the P/E ratio is a straightforward way to think about what you are paying for each dollar of earnings. It links directly to today’s share price and current earnings, which most investors follow closely.
What counts as a “normal” or “fair” P/E depends on how fast earnings are expected to grow and how risky those earnings are. Higher growth and lower perceived risk usually justify a higher P/E, while slower growth or higher risk tend to justify a lower one.
Procter & Gamble currently trades on a P/E of 22.62x. That sits above the Household Products industry average of 17.38x, but below the peer group average of 27.07x. Simply Wall St’s Fair Ratio for Procter & Gamble is 23.80x, which is a proprietary estimate of what the P/E “should” be, given factors such as earnings growth, margins, industry, market cap and company specific risks. This Fair Ratio can be more useful than a simple peer or industry comparison because it adjusts for those fundamentals rather than assuming all companies deserve the same multiple.
With a Fair Ratio of 23.80x versus the current 22.62x, the shares screen as undervalued on this P/E lens.
Result: UNDERVALUEDNYSE:PG P/E Ratio as at Feb 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.
Upgrade Your Decision Making: Choose your Procter & Gamble Narrative
Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St this comes through Narratives, which let you attach a clear story about Procter & Gamble to the numbers you care about. You can set your own fair value, revenue, earnings and margin assumptions, link that story to a forecast, and then to a fair value on the Community page where millions of investors share views. This lets you see, for example, one Procter & Gamble Narrative that arrives at a fair value of about US$121.06 and another that lands closer to US$185.05. You can then compare each Fair Value to the current share price and watch those Narratives update automatically as new news or earnings data is added.
For Procter & Gamble however we will make it really easy for you with previews of two leading Procter & Gamble Narratives:
These sit side by side, so you can see how different assumptions on growth, margins and required return can lead to very different views on fair value, even when both are using detailed models.
🐂 Procter & Gamble Bull Case
Fair value: US$167.45
Implied discount to fair value at US$157.33: 6.0%
Revenue growth assumption: 3.24%
Analysts are using revenue growth of about 3.3% a year and a small uplift in profit margins to around 19.3% to support their fair value estimate. The narrative relies on continued product rollouts across brands like Old Spice, Crest and Pantene, along with marketing campaigns and broader consumer penetration to sustain earnings and cash returns to shareholders. Key risks highlighted include consumer and retailer volatility in major markets, geopolitical tensions, tariffs, currency moves and commodity costs, any of which could pressure margins and earnings if not offset.
🐻 Procter & Gamble Bear Case
Fair value: US$121.06
Implied premium to …