Colgate-Palmolive (CL) Heads To Barclays Conference, Is The Stock Undervalued?

Colgate-Palmolive (CL) is back in the spotlight as CEO Noel R. Wallace prepares to address investors at Barclays’ Global Consumer Staples Conference in Boston, with attention on management’s outlook for the US business.

Recent trading has cooled, with the share price down 5.5% over the past month and 2.3% over the last week, even though Colgate-Palmolive still shows a 13.3% year to date share price gain and a 3 year total shareholder return of 29.7%. This points to longer term momentum, while shorter term sentiment looks more cautious around events like the Barclays conference and expectations for a potential US business stabilization story.

Scan Colgate-Palmolive alongside other consumer staples that are showing resilient fundamentals and potential for steadier performance using our curated list of solid balance sheet and fundamentals (24 results)

Colgate-Palmolive now trades at a double discount, roughly 12% below the average analyst target and about 31% below an estimated intrinsic value. Is that a simple mispricing, or a fair warning label on the recent US wobble?

Most Popular Narrative: 2% Overvalued

The most followed narrative on Colgate-Palmolive pegs fair value at $86.48, only slightly below the recent $88.03 close, which frames this as a small valuation gap rather than a deep discount.

The distortion runs through every derived metric. The dividend payout looks stretched at roughly 82% of GAAP EPS and is about 57% of Base Business EPS. The stock looks expensive at 35 times GAAP earnings and trades near 24 times normalised. The trailing twelve month margin carries the same contamination, because the fourth quarter of 2025 still sits inside the window.

Read the complete narrative.

This narrative examines how high reported multiples align with a cleaner margin picture. The fair value math relies on assumptions of steady sales growth, improving profitability and a future earnings multiple that reflects Colgate-Palmolive continuing at a measured pace without requiring a dramatic turnaround.

Result: Fair Value of $86.48 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

Still, this story can break if North America stays weak longer than management expects or if another skin health impairment signals deeper brand issues.

Find out about the key risks to this Colgate-Palmolive narrative.

Another View: SWS DCF Points To Upside

While the user narrative frames Colgate-Palmolive as roughly 2% overvalued at $86.48, the SWS DCF model lands in a very different place. It estimates a future cash flow value of $128.20 per share, which is about 31% above the recent $88.03 price and characterizes the stock as undervalued. That difference raises a simple question: Which set of assumptions do you consider more reliable?

If you want to see how that cash flow based estimate is built line by line, take a look at the Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Colgate-Palmolive for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 31 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed messages on Colgate-Palmolive so far. Act quickly, review both the potential risks and the upside drivers, then weigh the 3 key rewards and 3 important warning signs against your own expectations.

Looking for more investment ideas beyond Colgate-Palmolive?

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• Hunt for mispriced quality and scan 31 high quality undervalued stocks that combine fundamental strength with room for the market to catch up.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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