One-glance verdict
Within fair range
$140.79 our estimate vs market $145.27
Wall Street consensus: $160.61 (14.1% higher than our fair-value estimate)
3% above our estimate
Fundamentals snapshot
The Procter & Gamble Company
PG · NYQ · Consumer Defensive · Household & Personal Products
Current price
$145.27
52-week range
$137.62 - $167.25
Market cap
$337.41B
Balance sheet
Watch
22.52x Strong cushion
Net debt $25.08B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.3% last year.
- Reward Returns 30.3% on equity, ahead of 33% of its peers.
- Risk Insider ownership is only 0.1% (peer median: 0.1%).
- Risk Operating margin compressed from 22.1% to 22.1% over 3 years.
What this company does
The Procter & Gamble Company
Procter & Gamble sells essential household brands you probably recognize, like Tide detergent, Pampers diapers, and Crest toothpaste. Most of its revenue (the total money a company makes from sales) comes from its Fabric & Home Care division, which sells laundry and cleaning supplies. Since people need to buy these items over and over again, the company's sales tend to be relatively stable through good and bad economic times.
How the company got here
Procter & Gamble, often called P&G, started in 1837 when a candle maker and a soap maker, who were brothers-in-law, joined forces in Cincinnati, Ohio. A key moment was winning contracts to supply soap and candles to the Union Army during the Civil War, which grew their business significantly. Another turning point was the creation of Ivory soap in 1879, an affordable soap that floated, which they marketed heavily, helping to build a direct connection with consumers. Over many years, P&G invented or bought many brands that are now household names, like Tide laundry detergent, Crest toothpaste, and Pampers diapers, growing into a global giant of consumer products.
What it actually does
Procter & Gamble makes and sells a wide variety of branded products that people use every day for cleaning, personal hygiene, and health. You would recognize their products from almost any grocery store, drug store, or big-box retailer like Target or Walmart. The company's business is focused on creating well-known brands in categories from laundry detergent and paper towels to shampoo and diapers. P&G spends a lot on advertising to make sure shoppers know and trust their brand names when they are making purchasing decisions.
Fabric & Home Care
This is P&G's largest business segment, making up over a third of the company's sales. It includes many of the best-known cleaning products in the world, such as Tide and Ariel laundry detergents, Downy fabric softener, and Cascade dishwasher soap. It also includes home cleaning products like Febreze air fresheners, Swiffer dusters, and Mr. Clean surface cleaners. Essentially, this division sells the products people buy over and over again to keep their clothes and homes clean.
Baby, Feminine & Family Care
This segment, the second largest, provides products for personal and family hygiene. It is home to Pampers and Luvs diapers, which are a huge part of the business. For feminine care, it includes well-known brands like Always and Tampax. The family care portion consists of paper products you'd find in most homes, like Charmin toilet paper, Bounty paper towels, and Puffs tissues.
Beauty
The Beauty segment focuses on skin and hair care products. This part of the company sells shampoos and conditioners under brands like Head & Shoulders and Pantene. It also includes skincare brands like Olay, which makes moisturizers and cleansers, and deodorants such as Old Spice and Secret. While a significant part of the company, it's smaller than the cleaning and paper product divisions.
Health Care
This division sells personal health and oral care products. A major part of this business is dental care, with Crest toothpaste and Oral-B toothbrushes being some of the most recognizable brands. It also includes health products that you might find in a medicine cabinet, like Vicks for coughs and colds, Metamucil for digestive health, and Pepto-Bismol for stomach issues.
Grooming
This is P&G's most focused and smallest segment, centered on shaving products for men and women. The cornerstone of this business is the Gillette brand, which sells razors, blades, and shaving creams. It also includes the Venus brand for women's shaving products and Braun, which makes electric shavers and other small appliances.
What management is betting on now
Management's core strategy is to win by having products that are noticeably better than the competition in areas where performance is the main reason people choose a brand. They are focusing on their most profitable daily-use brands and are investing heavily in research to create innovative new products. The company is also working to make its supply chain (the entire process of making and delivering products to stores) more efficient and resilient to save money and ensure products are always on the shelf. Additionally, P&G is focused on improving the environmental sustainability of its products and packaging, believing that consumers will increasingly choose brands that are both effective and eco-friendly.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$3.31B
FY2025 Q2
$3.90B
FY2025 Q3
$2.85B
FY2025 Q4
$3.99B
FY2026 Q1
$4.21B
FY2026 Q2
$3.81B
FY2026 Q3
$3.03B
FY2026 Q4
$4.11B
Revenue
$21.20B
Net income
$3.04B
Diluted EPS
1.26
Operating cash flow
$5.13B
Free cash flow
$4.11B
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Sources
Revenue
$21.23B
Net income
$3.93B
Diluted EPS
1.63
Operating cash flow
$4.04B
Free cash flow
$3.03B
Fetching…
Sources
Revenue
$22.21B
Net income
$4.32B
Diluted EPS
1.78
Operating cash flow
$4.97B
Free cash flow
$3.81B
Fetching…
Sources
Revenue
$22.39B
Net income
$4.75B
Diluted EPS
1.95
Operating cash flow
$5.41B
Free cash flow
$4.21B
Fetching…
Sources
Revenue
$20.89B
Net income
$3.62B
Diluted EPS
1.48
Operating cash flow
$4.99B
Free cash flow
$3.99B
Fetching…
Sources
Revenue
$19.78B
Net income
$3.77B
Diluted EPS
1.54
Operating cash flow
$3.71B
Free cash flow
$2.85B
Fetching…
Sources
Revenue
$21.88B
Net income
$4.63B
Diluted EPS
1.88
Operating cash flow
$4.83B
Free cash flow
$3.90B
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Sources
Revenue
$21.74B
Net income
$3.96B
Diluted EPS
1.61
Operating cash flow
$4.30B
Free cash flow
$3.31B
Fetching…
Sources
Is it cheap or expensive?
Fair value $140.79 vs current price $145.27
Wall Street consensus is the average analyst price target: $160.61 (14.1% higher than our fair-value estimate).
Our most-likely fair value is $140.79 a share — about 3.1% away from today's price of $145.27, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $25.1B. Interest coverage 22.5x.
Net debt
$25.08B
Interest coverage
22.52x
The Procter & Gamble Company's profit covers its interest bill about 22.5 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
PG
BASELINE
The Procter & Gamble Company
Total debt $35.02B Interest coverage 22.52x This is the baseline the peer rows are being compared against.
Total debt $37.25B Interest coverage 9.22x -59% vs PG Carries about 2.4x less debt cushion than PG.
Total debt $7.86B Interest coverage 15.85x -30% vs PG Carries about 1.4x less debt cushion than PG.
Total debt $6.54B Interest coverage 9.18x -59% vs PG Carries about 2.5x less debt cushion than PG.
Total debt $8.61B Interest coverage 6.31x -72% vs PG Carries about 3.6x less debt cushion than PG.
Total debt $9.25B Interest coverage 5.02x -78% vs PG Carries about 4.5x less debt cushion than PG.
What you should know
The case for and against PG
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.3% last year.
-
Returns 30.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.1% (peer median: 0.1%).
-
Operating margin compressed from 22.1% to 22.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.94x
Forward P/E
19.63x
P/B
6.33x
P/S
3.88x
EV/EBITDA
14.70x
PEG ratio
3.65x
Profitability
How much profit each dollar creates
Gross margin
50.9%
Operating margin
22.1%
Net margin
18.4%
ROE
30.3%
ROA
10.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.64x
Current ratio
0.68x
Quick ratio
0.41x
Total debt
$35.02B
Total cash
$9.94B
Growth
How the business has been compounding
Revenue TTM
$87.03B
Revenue 5Y CAGR
2.1%
EPS TTM
6.62
EPS 5Y CAGR
3.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$19.56B
Free CF TTM
$15.15B
FCF margin
17.4%
Dividend
Shareholder payout
Yield
3.0%
Payout ratio
64.3%
Last ex-div date
2026-07-24