Stock Analysis on Net
Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Common Stock Valuation Ratios (Price Multiples)

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios

Procter & Gamble Co., current price multiples

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Procter & Gamble Co. Consumer Staples
Selected Financial Data
Current share price (P) $161.50
No. shares of common stock outstanding 2,360,135,282
Growth rate (g) 10.17%
 
Earnings per share (EPS) $6.09
Next year expected EPS $6.71
Operating profit per share $7.68
Sales per share $34.75
Book value per share (BVPS) $19.82
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 26.52 28.27
Price to next year expected earnings 24.08 25.85
Price-earnings-growth (PEG) 2.61 3.02
Price to operating profit (P/OP) 21.02 21.16
Price to sales (P/S) 4.65 1.56
Price to book value (P/BV) 8.15 8.40

Based on: 10-K (reporting date: 2023-06-30).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Historical Valuation Ratios (Summary)

Procter & Gamble Co., historical price multiples

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Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Price to earnings (P/E) 25.47 23.91 24.46 25.85 78.69 21.68
Price to operating profit (P/OP) 20.19 19.41 19.08 21.01 52.12 15.00
Price to sales (P/S) 4.46 4.31 4.51 4.65 4.22 3.08
Price to book value (P/BV) 7.83 7.42 7.40 7.09 6.06 3.93

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Procter & Gamble Co. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Procter & Gamble Co. P/OP ratio increased from 2021 to 2022 and from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Procter & Gamble Co. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Procter & Gamble Co. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

Procter & Gamble Co., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 2,357,306,187 2,389,553,883 2,427,424,874 2,486,086,692 2,502,259,668 2,488,011,390
Selected Financial Data (US$)
Net earnings attributable to P&G available to common shareholders (in millions) 14,371 14,461 14,035 12,764 3,634 9,485
Earnings per share (EPS)2 6.10 6.05 5.78 5.13 1.45 3.81
Share price1, 3 155.28 144.72 141.41 132.71 114.28 82.64
Valuation Ratio
P/E ratio4 25.47 23.91 24.46 25.85 78.69 21.68
Benchmarks
P/E Ratio, Industry
Consumer Staples 25.52 25.47 27.69 24.71 37.90 —

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net earnings attributable to P&G available to common shareholders ÷ No. shares of common stock outstanding
= 14,371,000,000 ÷ 2,357,306,187 = 6.10

3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 155.28 ÷ 6.10 = 25.47

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Procter & Gamble Co. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

Procter & Gamble Co., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 2,357,306,187 2,389,553,883 2,427,424,874 2,486,086,692 2,502,259,668 2,488,011,390
Selected Financial Data (US$)
Operating income (in millions) 18,134 17,813 17,986 15,706 5,487 13,711
Operating profit per share2 7.69 7.45 7.41 6.32 2.19 5.51
Share price1, 3 155.28 144.72 141.41 132.71 114.28 82.64
Valuation Ratio
P/OP ratio4 20.19 19.41 19.08 21.01 52.12 15.00
Benchmarks
P/OP Ratio, Industry
Consumer Staples 19.10 17.57 18.49 17.82 19.11 —

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 18,134,000,000 ÷ 2,357,306,187 = 7.69

3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 155.28 ÷ 7.69 = 20.19

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Procter & Gamble Co. P/OP ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Sales (P/S)

Procter & Gamble Co., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 2,357,306,187 2,389,553,883 2,427,424,874 2,486,086,692 2,502,259,668 2,488,011,390
Selected Financial Data (US$)
Net sales (in millions) 82,006 80,187 76,118 70,950 67,684 66,832
Sales per share2 34.79 33.56 31.36 28.54 27.05 26.86
Share price1, 3 155.28 144.72 141.41 132.71 114.28 82.64
Valuation Ratio
P/S ratio4 4.46 4.31 4.51 4.65 4.22 3.08
Benchmarks
P/S Ratio, Industry
Consumer Staples 1.41 1.49 1.55 1.45 1.41 —

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 82,006,000,000 ÷ 2,357,306,187 = 34.79

3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 155.28 ÷ 34.79 = 4.46

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Procter & Gamble Co. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Price to Book Value (P/BV)

Procter & Gamble Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 2,357,306,187 2,389,553,883 2,427,424,874 2,486,086,692 2,502,259,668 2,488,011,390
Selected Financial Data (US$)
Shareholders’ equity attributable to Procter & Gamble (in millions) 46,777 46,589 46,378 46,521 47,194 52,293
Book value per share (BVPS)2 19.84 19.50 19.11 18.71 18.86 21.02
Share price1, 3 155.28 144.72 141.41 132.71 114.28 82.64
Valuation Ratio
P/BV ratio4 7.83 7.42 7.40 7.09 6.06 3.93
Benchmarks
P/BV Ratio, Industry
Consumer Staples 7.58 7.60 7.52 6.66 6.34 —

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Shareholders’ equity attributable to Procter & Gamble ÷ No. shares of common stock outstanding
= 46,777,000,000 ÷ 2,357,306,187 = 19.84

3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 155.28 ÷ 19.84 = 7.83

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Procter & Gamble Co. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.