CL
Colgate-Palmolive
Dividend / Cash flow
★ Quality 82/100Price today
$91.07
what the market pays
Worth
$108.41
calculated cycle value
Price is 16% below its value
charlieapp.co
A monopoly position
This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Established business paying dividends
$116.49
per share
How it's calculated
Colgate-Palmolive — assistant high-path (2026-06-07). Review note.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Dividend / Cash flow · vs 42 peers
You pay 22.1x times this business's cash flow; its sector median is 25.8x.
18% below what Charlie thinks it's worth (26x) — that gap is your safety margin.
Why Discounted?
Its free cash flow is $4.48/share × 26.0x multiplier minus $8.08 in negative net cash = $108.41 in intrinsic value. Today's price of $91.07 is 19% below value — a moderate discount, a good spot to enter gradually.
The price is 16% off the calculated value. Close, but without the ideal discount.
It's fine to buy in pieces. Monthly DCA works well here.
For a bigger safety margin, wait for $86.73 or less.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$86.73
-20% off Value
🟡 Discounted
≤$102.99
-5% off Value
🟡 Today
$91.07
+19% Valor
Discounted
The price is close to value. There's no big discount, but it's reasonable to invest in pieces.
“The market is a device for transferring money from the impatient to the patient.”
— Warren Buffett
Model updated · July 2026
The business
The brand is the mirror: you ask for 'a Colgate,' not toothpaste.
Colgate-Palmolive sells toothpaste, soap, detergent, and pet food (Hill's) in more than 200 countries. It generates $20.4B in sales with items people rebuy every week without thinking. It charges pennies per unit, billions of times over.
It dominates the global oral care category with the leading toothpaste share for decades. The brand is etched into habit: asking for 'a Colgate' means asking for the product. Its mass distribution and 60% gross margins make the business hard to imitate without burning capital for a generation.
Revenue history
From $17.4B to $20.4B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $20.4B · FY2025
Of every $100 in sales, $89 goes to costs and operations; $11 is left as net profit (11% margin).
Catalysts and risks
Hill's Pet Nutrition grows double digits and already makes up ~20% of sales; new U.S. production capacity adds volume in 2026.
Cumulative price hikes in emerging markets sustain gross margin expansion toward mid-2026.
Buybacks and a dividend raised 62 years straight: the $3.6B FCF funds direct return to shareholders.
$7.8B in debt against only $1.3B in cash; leverage limits the margin for error if rates rise.
Private-label and local brands gain ground in price-sensitive markets.
Exposure to emerging-market currencies: the strong dollar erodes reported sales year after year.
Charlie's note
“A boring business that prints cash while you sleep — I like it that way. At 26x FCF you pay full toll for the quality; buy when the market gets bored of the boring.”
Analysis · June 2026
So when would be a good price for Colgate-Palmolive?
Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.