Company Profile of Procter & Gamble Co. (PG)
Headquartered in Cincinnati in Ohio, Procter & Gamble Co. is a leading global multinational consumer goods company which was founded in 1837. Its businesses range across fabric & homecare, baby, feminine & family care, grooming, beauty, healthcare and P&G chemicals. Currently trading at $158.04, projected FCF is $73.38. The intrinsic value of Procter & Gamble stock, based on the model Discounted Cash Flows, is $172.17. With the current market price of $159.29, the upside of Procter & Gamble Co is 8.1%. Overall, PG witnessed minute fluctuations in May along with continued investor interest.
Financial Updates
In Q3 2025, the company saw a decline in its financial performance from its robust earnings in the previous year. It recorded a revenue of $19.78 billion, a 2%-year decline from prior-period year of $20.20 billion. Its EPS was $1.54, a 1.3% increase from $1.52 in the same quarter of the previous year. A modest uptick in its net income to $3.77 billion, from $3.75 billion of the prior-period year, can be attributed to its decreasing performance in multiple key segments.
A rise of 90 basis points in its operating margin to reach 22.1% and that of 310 basis points in its core gross margin to arrive at 51.3% gained positive investor traction. Additionally, its SG&A expenses increased as a percentage of sales because of the reinvestments and inflationary pressures. While in 2024 Proctor & Gamble displayed strong financial results and sustained sales growth, 2025 reflected its resilience in the transpiring industry transformations and market volatility.
Valuation Analysis
Holding a market capitalization of around $395 billion, the stock often draws strong market criticism. Its dividend yield is 2.39%, P/E Ratio is 24.41 and PEG Ratio (5-year expected) is 5.22. Its operating margin is 26.24%, ROE is 30.56%, free cash flow is $15.5 billion and debt-to-equity ratio is 0.68 (approximately). The factors that comprise the strong value proposition of PG are its rich legacy, diverse portfolio, widespread international footprint, consistent cash flows and profitability, focus on shareholder return and financial resilience. The company’s limitations are multifold and powerful, such as its high-sensitivity to geopolitics, inflation and escalated commodity prices.
The valuation metrics for it by Financhill mention an enterprise value (EV) of $420.8 billion, EV/EBITDA of 18.07x, EV/free cash flow of 27.20x and price/operating cash flow of 26.88x. These depict that the stock is functioning above the industry average and that it is poised for growth. The investor sentiment towards the P&G stock is healthy which is a testimony to its financial and growth potential.
With the confidence of the market in the PG stock, MarketBeat reports that out of the 24 Wall Street analysts that have issued ratings for Procter & Gamble in the last 12 months, 17 have given it a consensual rating of Moderate Buy. Among them, the highest price target was $209.00 due to their positive outlook on the long-term returns of the stock. The market continues to regard the stock as a noteworthy consideration for diversified investment portfolios.
Bullish or Bearish?
Although there is shared optimism about the PG stock, potential risks include the internal and macro factors. With the anticipation of inflation, currency fluctuations, rising competition and tapering growth forecasts, the PG stock should be assessed in a balanced approach. Therefore, the stock is Bullish, though with vital restraints.
The stock is also valued at a premium which may be subjected to short-term falls due to the company’s strategic initiatives and economic factors. Its dominant market position for the consumer staples armors its upward financial trajectory. The peaking costs of supply chain, reduced market share in a few geographies and stagnant growth in certain businesses, coupled with the macro reasons, could affect its growth expectations.
Company Profile of Procter & Gamble Co. (PG)
Headquartered in Cincinnati in Ohio, Procter & Gamble Co. is a leading global multinational consumer goods company which was founded in 1837. Its businesses range across fabric & homecare, baby, feminine & family care, grooming, beauty, healthcare and P&G chemicals. Currently trading at $158.04, projected FCF is $73.38. The intrinsic value of Procter & Gamble stock, based on the model Discounted Cash Flows, is $172.17. With the current market price of $159.29, the upside of Procter & Gamble Co is 8.1%. Overall, PG witnessed minute fluctuations in May along with continued investor interest.
Financial Updates
In Q3 2025, the company saw a decline in its financial performance from its robust earnings in the previous year. It recorded a revenue of $19.78 billion, a 2%-year decline from prior-period year of $20.20 billion. Its EPS was $1.54, a 1.3% increase from $1.52 in the same quarter of the previous year. A modest uptick in its net income to $3.77 billion, from $3.75 billion of the prior-period year, can be attributed to its decreasing performance in multiple key segments.
A rise of 90 basis points in its operating margin to reach 22.1% and that of 310 basis points in its core gross margin to arrive at 51.3% gained positive investor traction. Additionally, its SG&A expenses increased as a percentage of sales because of the reinvestments and inflationary pressures. While in 2024 Proctor & Gamble displayed strong financial results and sustained sales growth, 2025 reflected its resilience in the transpiring industry transformations and market volatility.
Valuation Analysis
Holding a market capitalization of around $395 billion, the stock often draws strong market criticism. Its dividend yield is 2.39%, P/E Ratio is 24.41 and PEG Ratio (5-year expected) is 5.22. Its operating margin is 26.24%, ROE is 30.56%, free cash flow is $15.5 billion and debt-to-equity ratio is 0.68 (approximately). The factors that comprise the strong value proposition of PG are its rich legacy, diverse portfolio, widespread international footprint, consistent cash flows and profitability, focus on shareholder return and financial resilience. The company’s limitations are multifold and powerful, such as its high-sensitivity to geopolitics, inflation and escalated commodity prices.
The valuation metrics for it by Financhill mention an enterprise value (EV) of $420.8 billion, EV/EBITDA of 18.07x, EV/free cash flow of 27.20x and price/operating cash flow of 26.88x. These depict that the stock is functioning above the industry average and that it is poised for growth. The investor sentiment towards the P&G stock is healthy which is a testimony to its financial and growth potential.
With the confidence of the market in the PG stock, MarketBeat reports that out of the 24 Wall Street analysts that have issued ratings for Procter & Gamble in the last 12 months, 17 have given it a consensual rating of Moderate Buy. Among them, the highest price target was $209.00 due to their positive outlook on the long-term returns of the stock. The market continues to regard the stock as a noteworthy consideration for diversified investment portfolios.
Bullish or Bearish?
Although there is shared optimism about the PG stock, potential risks include the internal and macro factors. With the anticipation of inflation, currency fluctuations, rising competition and tapering growth forecasts, the PG stock should be assessed in a balanced approach. Therefore, the stock is Bullish, though with vital restraints.
The stock is also valued at a premium which may be subjected to short-term falls due to the company’s strategic initiatives and economic factors. Its dominant market position for the consumer staples armors its upward financial trajectory. The peaking costs of supply chain, reduced market share in a few geographies and stagnant growth in certain businesses, coupled with the macro reasons, could affect its growth expectations.