Procter & Gamble Company
🇺🇸 PG · NYSE/NASDAQ · US7427181091
Consumer
USD 143.12 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
21.2
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: 143.12 ÷ 6.75 = 21.2
TTM period through: 2025-12-31
Forward P/E (estimated): 19.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 21.2
Yield (Fwd)
2.96%
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): 2.90%
Net Debt/EBITDA (TTM)
1.1x
Latest quarter: 4.6x
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: 2025-12-31
Latest quarter (2025-12-31): 4.6x
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)
62.7%
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): 61.2%
Cash Flow Payout (TTM): 52.9%
FCF Coverage (TTM): 1.47x
ROE
31.6%
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 daily-use brands and a highly secure dividend history. While the company boasts exceptional financial stability and a safe 62% payout ratio, current valuation levels offer limited upside. Existing shareholders should maintain positions given the robust fundamentals, but new investors may want to wait for a better entry point that provides a higher yield and margin of safety.
Sector Context
Procter & Gamble manufactures and markets a wide array of daily-use consumer goods, managing iconic brands such as Tide, Pampers, and Gillette. Consumer staples companies benefit from highly predictable, recurring demand regardless of broader economic conditions, making them exceptionally well-suited for long-term dividend stability.
Temporary Opportunity Identified
Short-term cost pressures and weak demand in specific international markets like China have led to recent minor stock price pullbacks and analyst downgrades.
📊 Strategy Analysis
- • Unmatched portfolio of essential daily-use brands provides strong pricing power and highly predictable cash flows across economic cycles.
- • Pristine balance sheet with a Net Debt/EBITDA of 1.09x, well below the 3x threshold, ensuring exceptional financial stability.
- • Highly sustainable dividend supported by a conservative 62.27% TTM payout ratio and strong Free Cash Flow coverage of 1.47x.
- • Exceptional profitability profile highlighted by a 31.56% Return on Equity and consistent historical margin stability.
⚠ What to Watch
- • Current P/E multiple of 21.21x sits well above the strategy's target 8-15x value range, leaving limited margin of safety for new capital.
- • The trailing dividend yield of 2.90% falls slightly short of the strict 3% minimum requirement typically desired for optimal income generation.
- • Recent market headwinds, including cost pressures and weak demand in key regions like China, could create short-term volatility.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.