Colgate-Palmolive Company (CL) Stock Analysis
Score BCompounder · Grade B · Bullish
$89.80
$158.52
+76.5%
4/10
B
Compounder
Investment Thesis
Price is above modeled value range. Quality supports holding but not attractive for new positions.
No strong signal in either direction.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $158.52 (+76.5%). Significantly undervalued.
PEG-Based EPS
$164.46
FCF DCF Model
$179.60
Blended Fair Value
$158.52
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF
Quality Analysis
78/120 points
Investable
ROE (3Y Avg)
363.6%
ROIC-WACC Spread
8.6%
D/E Ratio
1.5x
Current Ratio
0.9x
Interest Coverage
3x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 8.6pp (got 22/25 pts)
- Leverage: D/E 1.5x (0/15 pts)
- Interest coverage: 2.5x (8/10 pts)
- Liquidity: Current Ratio 0.90 (8/10 pts)
Market Sentiment
Wall Street Consensus
$95.84
+6.7% Upside
19 analysts
Rating: Buy
Our model is slightly more cautious than Wall Street.
Trend & Technical
Price ($89.80) is 8.1% above SMA 200 ($83.04). Bullish trend confirmed.
Tech Score 90/100 — MOMENTUM ALIGNMENT. Healthy uptrend confirmed by RSI and MACD. Technical tailwind.
Risk & Reward
Asymmetry Ratio
8.81:1
Expected Return
+51.2%
Bull Upside
+88.1%
Bear Downside
-10.0%
Excellent asymmetry: 8.81:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of CL?
Based on our multi-method conviction analysis, the estimated fair value of Colgate-Palmolive Company (CL) is $158.52. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is CL a buy, sell, or hold?
CL currently has a HOLD rating with a conviction score of 4/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.
Is CL a high-quality stock?
Colgate-Palmolive Company has a quality grade of B (78/120 points), rated as Investable. Key metrics include ROE of 363.6%, ROIC-WACC spread of 8.6%, and D/E ratio of 1.5x.
What type of stock is CL?
CL is classified as a "compounder" in our framework. High P/E: 34.8x, Mature growth: 0.0%, Dividend paying: 2.4%, High ROE (compounder): 363.6%, Consistent FCF: 3/3 years positive
What do Wall Street analysts say about CL?
19 Wall Street analysts have a consensus price target of $95.84 for CL, representing +6.7% upside. Targets range from — to —. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.
What are the risks of investing in CL?
The risk/reward asymmetry ratio for CL is 8.81:1, rated as Very Favorable. Excellent asymmetry: 8.81:1 ratio. Upside significantly outweighs downside. The expected return is +51.2%, with bull case upside of +88.1% and bear case downside of -10.0%.
What is the current trend for CL?
CL is in a bullish trend. Price ($89.80) is 8.1% above SMA 200 ($83.04). Bullish trend confirmed. The technical score is 90/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.