The Clorox Company (CLX) Stock Analysis
Score DValue · Grade C · Bearish
$92.11
$31.63
-65.7%
1/10
C
Value
Investment Thesis
Low quantitative score: Low quality, stretched valuation, or poor risk/reward.
For New Investors
Quantitative score: weak
For Current Holders
Quantitative score: low
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: $31.63 (-65.7%). Overvalued vs fundamentals.
PEG-Based EPS
$13.80
FCF DCF Model
$13.08
Blended Fair Value
$31.63
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF
Quality Analysis
64/120 points
Investable
ROE (3Y Avg)
5.5%
ROIC-WACC Spread
5.4%
D/E Ratio
0.5x
Current Ratio
0.9x
Interest Coverage
3x
FCF Positive Years
3/3
Quality Flags
- Low ROE: 5.5% (need >12%, got 4/20 pts)
- ROIC spread: 5.4pp (got 14/25 pts)
- Leverage: D/E 0.5x (10/15 pts)
- Interest coverage: 2.5x (8/10 pts)
- Liquidity: Current Ratio 0.90 (8/10 pts)
Market Sentiment
Wall Street Consensus
$105.59
+14.6% Upside
17 analysts
Rating: Hold
Our model is more cautious than Wall Street.
Trend & Technical
Price ($92.11) is 15.1% below SMA 200 ($108.54). Bearish trend. Caution on entry.
Tech Score 46/100 — Weak technicals. Bearish bias in trend or momentum.
Risk & Reward
Asymmetry Ratio
0.95:1
Expected Return
-1.7%
Bull Upside
+20.9%
Bear Downside
-21.9%
Poor asymmetry: 0.95:1 ratio. Risk exceeds potential reward.
Verdict: Unfavorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
See exact entry zones, stop-loss levels, and a personalized action plan.
AI Executive Summary
Get a detailed AI-written breakdown of the investment thesis, risks, and catalysts.
Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
Ask AI about this stock
Chat with our AI analyst to ask questions about valuation, risks, or comparisons.
Frequently Asked Questions
What is the fair value of CLX?
Based on our multi-method conviction analysis, the estimated fair value of The Clorox Company (CLX) is $31.63. 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 CLX a buy, sell, or hold?
CLX currently has a AVOID rating with a conviction score of 1/10. Low quantitative score: Low quality, stretched valuation, or poor risk/reward. Quantitative score: weak.
Is CLX a high-quality stock?
The Clorox Company has a quality grade of C (64/120 points), rated as Investable. Key metrics include ROE of 5.5%, ROIC-WACC spread of 5.4%, and D/E ratio of 0.5x.
What type of stock is CLX?
CLX is classified as a "value" in our framework. Low P/E: 15.0x, High dividend: 5.3%, Mature growth: 0.0%, Consistent FCF: 3/3 years positive
What do Wall Street analysts say about CLX?
17 Wall Street analysts have a consensus price target of $105.59 for CLX, representing +14.6% upside. Targets range from — to —. The consensus recommendation is "Hold". Our model is more cautious than Wall Street.
What are the risks of investing in CLX?
The risk/reward asymmetry ratio for CLX is 0.95:1, rated as Unfavorable. Poor asymmetry: 0.95:1 ratio. Risk exceeds potential reward. The expected return is -1.7%, with bull case upside of +20.9% and bear case downside of -21.9%.
What is the current trend for CLX?
CLX is in a bearish trend. Price ($92.11) is 15.1% below SMA 200 ($108.54). Bearish trend. Caution on entry. The technical score is 46/100.
Related Stock Analyses
Get the complete analysis
Scenario targets, buy zones, action plan, executive summary, technical analysis, and AI chat. All free.
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.