Colgate-Palmolive

Methodology

Colgate-Palmolive's global oral care, personal care, and pet nutrition brands provide stable, predictable earnings from essential consumer products with strong international exposure. The company's dominant market positions in toothpaste and emerging market presence create reliable cash flows. This fair value calculation works well for Colgate given defensive characteristics and consistent execution, making it a textbook consumer staples valuation case.

Methodology

Colgate's PEG ratio typically ranges from 2.5-4.0, reflecting premium valuations for a defensive consumer staples company with modest growth in mature categories. The company's emerging market exposure and pricing power justify higher multiples than pure domestic consumer goods, but organic growth is constrained by category maturity. Compare to other global consumer staples to assess whether Colgate's brand strength warrants its premium positioning.

Methodology

Colgate-Palmolive's dividend yield (typically 2.0-2.5%) and 60+ year history of consecutive annual increases make PEGY essential for properly valuing this dividend aristocrat. The company's strong international cash generation supports reliable dividend growth even during challenging emerging market conditions. PEGY better captures the total return proposition for Colgate, where consistent dividend growth matters as much as the modest organic revenue expansion in mature oral care markets.