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Procter & Gamble Co. (PG) | Common Stock Valuation Ratios (Price Multiples)

See also

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Altria Group Inc. (MO), Valuation Ratios
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Nike Inc. (NKE), Valuation Ratios
Colgate-Palmolive Co. (CL), Valuation Ratios
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Kimberly-Clark Corp. (KMB), Valuation Ratios
Panasonic Corp. (PC), Valuation Ratios
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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
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Current Valuation Ratios

Procter & Gamble Co., current price multiples

	Procter & Gamble Co.	Consumer Goods
Selected Financial Data
Current share price (P)	$ 62.57
No. shares of common stock outstanding	2,747,768,202
Growth rate (g)	10.25%

Earnings per share (EPS)	$ 4.29
Next year expected EPS	$ 4.73
Operating profit per share	$ 5.76
Sales per share	$ 30.05
Book value per share (BVPS)	$ 24.62
Ratios (Price Multiples)
Price to earnings (P/E)	14.57	18.56
Price to next year expected earnings	13.22	17.15
Price-earnings-growth (PEG)	1.42	2.26
Price to operating profit (P/OP)	10.87	12.18
Price to sales (P/S)	2.08	1.19
Price to book value (P/BV)	2.54	2.68

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

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

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Historical Valuation Ratios (Summary)

Procter & Gamble Co., historical price multiples

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
Price to earnings (P/E)	13.63	13.33	11.38	17.84	19.53	22.38
Price to operating profit (P/OP)	10.16	10.60	9.48	12.61	13.07	14.67
Price to sales (P/S)	1.95	2.15	1.93	2.58	2.64	2.85
Price to book value (P/BV)	2.38	2.78	2.42	3.10	3.02	3.09

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.'s P/E ratio increased from 2009 to 2010 and from 2010 to 2011.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts can may use price to operating profit.	Procter & Gamble Co.'s P/OP ratio increased from 2009 to 2010 but then slightly declined from 2010 to 2011.
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.'s P/S ratio increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Procter & Gamble Co.'s P/BV ratio increased from 2009 to 2010 but then declined significantly from 2010 to 2011.

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Price to Earnings (P/E)

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
No. shares of common stock outstanding¹	2,747,768,202	2,838,474,868	2,918,890,075	3,034,310,829	3,120,750,759	3,175,086,100
Selected Financial Data (USD $)
Net earnings (in millions)	11,797	12,736	13,436	12,075	10,340	8,684
Earnings per share (EPS)	4.29	4.49	4.60	3.98	3.31	2.74
Share price^1, 2	58.51	59.82	52.37	71.01	64.70	61.20
P/E Ratio, Comparison to Industry
Procter & Gamble Co.	13.63	13.33	11.38	17.84	19.53	22.38
Industry, Consumer Goods	18.15	17.18	22.79	12.10	16.91	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Procter & Gamble Co.'s Annual Report.

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.'s P/E ratio increased from 2009 to 2010 and from 2010 to 2011.

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Price to Operating Profit (P/OP)

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
No. shares of common stock outstanding¹	2,747,768,202	2,838,474,868	2,918,890,075	3,034,310,829	3,120,750,759	3,175,086,100
Selected Financial Data (USD $)
Operating income (loss) (in millions)	15,818	16,021	16,123	17,083	15,450	13,249
Operating profit per share	5.76	5.64	5.52	5.63	4.95	4.17
Share price^1, 2	58.51	59.82	52.37	71.01	64.70	61.20
P/OP Ratio, Comparison to Industry
Procter & Gamble Co.	10.16	10.60	9.48	12.61	13.07	14.67
Industry, Consumer Goods	11.91	13.21	15.65	8.74	12.01	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Procter & Gamble Co.'s Annual Report.

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 can may use price to operating profit.	Procter & Gamble Co.'s P/OP ratio increased from 2009 to 2010 but then slightly declined from 2010 to 2011.

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Price to Sales (P/S)

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
No. shares of common stock outstanding¹	2,747,768,202	2,838,474,868	2,918,890,075	3,034,310,829	3,120,750,759	3,175,086,100
Selected Financial Data (USD $)
Net sales (in millions)	82,559	78,938	79,029	83,503	76,476	68,222
Sales per share	30.05	27.81	27.08	27.52	24.51	21.49
Share price^1, 2	58.51	59.82	52.37	71.01	64.70	61.20
P/S Ratio, Comparison to Industry
Procter & Gamble Co.	1.95	2.15	1.93	2.58	2.64	2.85
Industry, Consumer Goods	1.16	1.15	1.14	1.02	1.44	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Procter & Gamble Co.'s Annual Report.

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.'s P/S ratio increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.

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Price to Book Value (P/BV)

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
No. shares of common stock outstanding¹	2,747,768,202	2,838,474,868	2,918,890,075	3,034,310,829	3,120,750,759	3,175,086,100
Selected Financial Data (USD $)
Stockholders' equity attributable to parent (in millions)	67,640	61,115	63,099	69,494	66,760	62,908
Book value per share (BVPS)	24.62	21.53	21.62	22.90	21.39	19.81
Share price^1, 2	58.51	59.82	52.37	71.01	64.70	61.20
P/BV Ratio, Comparison to Industry
Procter & Gamble Co.	2.38	2.78	2.42	3.10	3.02	3.09
Industry, Consumer Goods	2.62	2.43	2.58	2.42	3.10	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Procter & Gamble Co.'s Annual Report.

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's required rate of return and its actual rate of return.	Procter & Gamble Co.'s P/BV ratio increased from 2009 to 2010 but then declined significantly from 2010 to 2011.

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