One-glance verdict
Undervalued
$78.65 our estimate vs market $58.92
Wall Street consensus: $67.58 (-14.1% lower than our fair-value estimate)
25% below our estimate, below the bear case
Fundamentals snapshot
Unilever PLC
UL · NYQ · Consumer Defensive · Household & Personal Products
Current price
$58.92
52-week range
$54.75 - $74.98
Market cap
$127.59B
Balance sheet
Stretched
9.22x Adequate
Net debt $26.93B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 31.0% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 4.1% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Unilever PLC
Unilever is a global company that makes many of the household brands you likely use every day, such as Dove soap, Hellmann's mayonnaise, and Axe deodorant. It earns money by selling these essential items to billions of people across the world. This matters because people tend to buy these products consistently, which can provide the company with steady sales even when the economy is slow.
How the company got here
Unilever was formed in 1930 through the merger of a Dutch margarine producer, Margarine Unie, and a British soapmaker, Lever Brothers. This combination of food and cleaning products set the stage for its future. Over the years, Unilever grew by acquiring many well-known brands like Lipton, Pond's, Hellmann's, and Ben & Jerry's. The company has a long history of selling everyday household goods and has expanded its reach to over 190 countries. A key strategy has been to focus on a smaller number of powerful brands that generate the majority of its sales.
What it actually does
Unilever is a global company that makes and sells a wide variety of consumer products that you likely use every day. Think about the soap and shampoo in your shower, the deodorant you use, the laundry detergent for your clothes, and even the mayonnaise and seasonings in your kitchen. The company owns many famous brands, including Dove, Axe, Rexona, Hellmann's, Knorr, and Vaseline. Essentially, Unilever's business is about creating and marketing these well-known brands to households all over the world.
Beauty & Wellbeing
This part of the company focuses on products that help you look and feel good, representing a significant portion of Unilever's business. It includes everything from shampoos, conditioners, and styling products from brands like Sunsilk and TRESemmé to skincare items like moisturizers from Pond's and Vaseline. This segment also includes high-end (or 'Prestige') beauty brands and wellness products like vitamins and supplements. This is a growing area for Unilever as it focuses more on premium products.
Personal Care
This is Unilever's largest business segment by sales and includes many of the hygiene products you use daily. It covers skin cleansing products like Dove soap and Lifebuoy, deodorants such as Axe and Rexona, and oral care items like toothpaste and toothbrushes from brands like Pepsodent. These are staple items in many households, providing a steady stream of revenue (money the company earns from sales) for the company.
Home Care
This segment is all about keeping your home clean and your clothes fresh. It includes laundry detergents and fabric conditioners from brands like OMO and Comfort, as well as surface cleaners and other home hygiene products from brands like Cif and Domestos. While not the largest segment, it's a core part of Unilever's business, providing essential products for households globally.
Foods
This division offers a range of food products, from condiments like Hellmann's mayonnaise and ketchup to cooking aids like Knorr soups, bouillons, and seasonings. It also includes Unilever Food Solutions, which provides products to chefs and restaurants. This segment represents a substantial part of the company's sales and has a long history within Unilever.
What management is betting on now
Unilever's management is currently focused on a 'Growth Action Plan' to make the company simpler and more competitive. A major part of this plan is concentrating on its 30 most powerful brands, which bring in the majority of its revenue. The company is also investing more in its Beauty & Wellbeing and Personal Care businesses, particularly in premium and science-led brands. Geographically, Unilever is placing a big bet on growth in emerging markets like India, as well as the United States. To streamline its operations, the company has also been selling off slower-growing parts of its business, such as its ice cream division.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $78.65 vs current price $58.92
Wall Street consensus is the average analyst price target: $67.58 (-14.1% lower than our fair-value estimate).
Our most-likely fair value is $78.65 a share — about 33.5% above today's price of $58.92, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $26.9B. Interest coverage 9.2x.
Net debt
$26.93B
Interest coverage
9.22x
Unilever PLC's profit covers its interest bill about 9.2 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
UL
BASELINE
Unilever PLC
Total debt $32.73B Interest coverage 9.22x This is the baseline the peer rows are being compared against.
Total debt $37.03B Interest coverage 22.55x +144% vs UL Carries about 2.4x more debt cushion than UL.
Total debt $7.97B Interest coverage 15.85x +72% vs UL Carries about 1.7x more debt cushion than UL.
Total debt $7.11B Interest coverage 9.18x -0% vs UL Has roughly the same debt cushion as UL.
Total debt $2.38B Interest coverage 11.32x +23% vs UL Carries about 1.2x more debt cushion than UL.
Total debt $8.80B Interest coverage 6.31x -32% vs UL Carries about 1.5x less debt cushion than UL.
What you should know
The case for and against UL
3 Rewards
2 Risks
Rewards
-
Returns 31.0% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 19.7x P/E vs peer median 21.9x (9.9% cheaper).
Risks
-
Stock trades 4.1% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.1%).
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)
19.71x
Forward P/E
15.18x
P/B
7.15x
P/S
2.53x
EV/EBITDA
14.17x
PEG ratio
10.93x
Profitability
How much profit each dollar creates
Gross margin
46.9%
Operating margin
20.1%
Net margin
18.7%
ROE
31.0%
ROA
8.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.61x
Current ratio
0.79x
Quick ratio
0.50x
Total debt
$32.73B
Total cash
$5.80B
Growth
How the business has been compounding
Revenue TTM
$58.45B
Revenue 5Y CAGR
-5.6%
EPS TTM
2.99
EPS 5Y CAGR
8.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$9.66B
Free CF TTM
$7.82B
FCF margin
13.4%
Dividend
Shareholder payout
Yield
3.9%
Payout ratio
78.6%
Last ex-div date
2026-05-15