Colgate Palmolive Equity Research Report – Part V

 

 

Colgate Palmolive Equity Research Report
Colgate Palmolive Equity Research Report

 

After analyzing Colgate Palmolive’s product category, business model, business performance, financial performance, management quality and competition, it’s time to check whether this company’s shares are available at attractive valuations.

I normally use different valuations to value a share.

I use Discounted Cash Flow, Earnings Power Value, PE based valuation and Dividend Discount Model to value stocks.

Once I do valuation using each method, I assign weights to each of these valuations, just to make sure that all methods are weighed properly.

 

Colgate Palmolive’s Valuation

 

According to my assumptions and weights assigned, the value of Colgate Palmolive comes at Rs. 595.

The current market price of the stock is Rs. 1330.

 

Should I Buy Colgate Palmolive Stock?

 

I think the value per share is Rs.595 and market price is Rs.1330 today. I think, the share is overvalued right now and I will wait till it comes below my intrinsic value calculation.

 

Will It Ever Come Below My Intrinsic Value?

 

Honestly, I don’t know.

My aim is to find out undervalued companies having excellent business and fundamentals.

Do let me know your feedback on this equity research report of Colgate Pamolive. :)


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Comments

  1. Girish says

    Sir
    I have been trying to calculate Colgate’s intrinsic value according to discounted cash flow method (Warren Buffett’s method). But being an engineering student there are lots of things from cash flow statement, I am confuse about, like calculation of net cash flow from operating activity & capital expenditures of Colgate.
    I am kindly requesting you to mail me intrinsic value calculation of Colgate India ltd.
    Thanks & Regards

    Girish Jadhav.

    • says

      Hi Girish,

      Currently the calculation video and Excel model is part of paid training program.

      However, soon you’ll see it on our blog and access it freely.

      Let me know if you have any more queries.

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