Procter & Gamble Company
🇺🇸 PG · NYSE/NASDAQ · US7427181091
Consumer
USD 141.57 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 141.57 ÷ 6.85 = 20.7
TTM period through: 2026-03-31
Forward P/E (estimated): 20.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.9
Yield (Fwd)
3.01%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.97%
Div. Growth (5Y CAGR)
6.3%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
1.1x
Latest quarter: 4.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 4.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
62.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 61.1%
Cash Flow Payout (TTM): 52.4%
FCF Coverage (TTM): 1.48x
ROE
31.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Procter & Gamble is a premier global consumer staples leader with an unmatched portfolio of essential brands and a highly secure dividend boasting a 70-year growth streak. While the company's financial stability and cash flow generation remain exceptional, the current valuation around $141 (P/E 20.7) offers limited upside. Existing shareholders should comfortably maintain positions given the unquestionable quality, but new investors may want to wait for a more attractive entry point.
Sector Context
Procter & Gamble is a global consumer staples giant that manufactures and sells a wide range of everyday household, personal care, baby, and beauty products. For dividend investors, consumer staples companies with dominant brand portfolios offer highly predictable cash flows, strong pricing power to combat inflation, and reliable dividend sustainability regardless of broader economic cycles.
Temporary Opportunity Identified
Broader market selloff driven by sticky inflation and interest rate fears, combined with background noise from recurring consumer class-action litigation regarding product ingredients.
📊 Strategy Analysis
- • Unmatched dividend reliability highlighted by 70 consecutive years of dividend growth, fully supported by a conservative 52.4% cash flow payout ratio.
- • Exceptional financial stability with a Net Debt/EBITDA of 1.06x, sitting well below the strategy's 3x threshold and providing substantial balance sheet strength.
- • Highly profitable, resilient business model demonstrating an excellent Return on Equity (ROE) of 31.11% and strong operating cash flow generation.
⚠ What to Watch
- • Current valuation (P/E of 20.66x) significantly exceeds the target 8-15x value range, providing limited upside and margin of safety.
- • The forward dividend yield of 3.01% just barely meets the 3% minimum threshold typically desired for optimal income generation.
- • Ongoing consumer class-action litigation regarding product ingredients presents short-term macroeconomic noise and minor legal expenses.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.