Price to Earnings (P/E)
since 2005
Calculation
Colgate-Palmolive Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to Colgate-Palmolive Company1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2023 | 33.85 | = | 72.77 | ÷ | 2.15 | 2.15 | = | 1,785 | ÷ | 830,378,790 | |
| Feb 17, 2022 | 30.71 | = | 79.15 | ÷ | 2.58 | 2.58 | = | 2,166 | ÷ | 840,487,222 | |
| Feb 18, 2021 | 24.79 | = | 78.72 | ÷ | 3.18 | 3.18 | = | 2,695 | ÷ | 848,562,678 | |
| Feb 21, 2020 | 27.55 | = | 76.27 | ÷ | 2.77 | 2.77 | = | 2,367 | ÷ | 855,029,777 | |
| Feb 21, 2019 | 23.95 | = | 66.70 | ÷ | 2.79 | 2.79 | = | 2,400 | ÷ | 861,676,494 | |
| Feb 15, 2018 | 30.80 | = | 71.22 | ÷ | 2.31 | 2.31 | = | 2,024 | ÷ | 875,326,736 | |
| Feb 23, 2017 | 26.92 | = | 74.44 | ÷ | 2.76 | 2.76 | = | 2,441 | ÷ | 882,856,721 | |
| Feb 18, 2016 | 43.36 | = | 67.22 | ÷ | 1.55 | 1.55 | = | 1,384 | ÷ | 892,738,516 | |
| Feb 19, 2015 | 29.21 | = | 70.21 | ÷ | 2.40 | 2.40 | = | 2,180 | ÷ | 907,081,762 | |
| Feb 20, 2014 | 25.37 | = | 61.86 | ÷ | 2.44 | 2.44 | = | 2,241 | ÷ | 918,943,637 | |
| Feb 21, 2013 | 21.40 | = | 56.55 | ÷ | 2.64 | 2.64 | = | 2,472 | ÷ | 935,393,422 | |
| Feb 23, 2012 | 18.41 | = | 46.67 | ÷ | 2.53 | 2.53 | = | 2,431 | ÷ | 959,155,180 | |
| Feb 24, 2011 | 17.41 | = | 38.83 | ÷ | 2.23 | 2.23 | = | 2,203 | ÷ | 987,742,398 | |
| Feb 25, 2010 | 17.91 | = | 41.56 | ÷ | 2.32 | 2.32 | = | 2,291 | ÷ | 987,494,358 | |
| Feb 27, 2009 | 15.41 | = | 30.09 | ÷ | 1.95 | 1.95 | = | 1,957 | ÷ | 1,002,633,842 | |
| Feb 28, 2008 | 22.66 | = | 38.61 | ÷ | 1.70 | 1.70 | = | 1,737 | ÷ | 1,019,641,540 | |
| Feb 23, 2007 | 25.92 | = | 34.17 | ÷ | 1.32 | 1.32 | = | 1,353 | ÷ | 1,026,827,590 | |
| Feb 24, 2006 | 20.83 | = | 27.31 | ÷ | 1.31 | 1.31 | = | 1,351 | ÷ | 1,030,712,770 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Colgate-Palmolive Co. Annual Report.
The valuation trajectory of the equity from 2006 to 2023 is characterized by a general expansion in both share price and the price-to-earnings (P/E) multiple, despite periodic fluctuations in earnings per share (EPS).
- Share Price Trends
- A long-term upward trend in share price is evident, rising from 27.31 US$ in 2006 to a peak of 79.15 US$ in 2022. While there were intermittent contractions—most notably between 2008 and 2009 and again between 2018 and 2019—the overall trajectory reflects significant capital appreciation over the 18-year period.
- Earnings per Share (EPS) Performance
- Earnings exhibited a general growth pattern, increasing from 1.31 US$ in 2006 to a high of 3.18 US$ in 2021. However, this growth was not linear. A notable contraction occurred in 2016, where EPS fell to 1.55 US$, and a more recent decline is observed in 2023, with EPS dropping to 2.15 US$.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio has shifted from a lower historical range to a higher valuation regime. Between 2006 and 2012, the ratio primarily fluctuated between 15.41 and 25.92. A period of valuation expansion began after 2013, leading to a significant outlier in 2016, where the ratio spiked to 43.36. This peak was driven by the sharp decline in EPS rather than a proportional surge in share price.
- Valuation Correlation and Recent Trends
- In the final years of the analyzed period, there is an observable increase in the P/E ratio despite a decline in EPS. From 2021 to 2023, as EPS decreased from 3.18 US$ to 2.15 US$, the P/E ratio expanded from 24.79 to 33.85. This suggests that the market maintained a higher valuation multiple for the stock even as trailing earnings weakened.
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Comparison to Competitors
Colgate-Palmolive Co., P/E, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Feb 16, 2023 | 33.85 | 23.91 |
| Feb 17, 2022 | 30.71 | 24.46 |
| Feb 18, 2021 | 24.79 | 25.85 |
| Feb 21, 2020 | 27.55 | 78.69 |
| Feb 21, 2019 | 23.95 | 21.68 |
| Feb 15, 2018 | 30.80 | 15.46 |
| Feb 23, 2017 | 26.92 | 22.38 |
| Feb 18, 2016 | 43.36 | 30.21 |
| Feb 19, 2015 | 29.21 | 19.24 |
| Feb 20, 2014 | 25.37 | 20.33 |
| Feb 21, 2013 | 21.40 | 17.50 |
| Feb 23, 2012 | 18.41 | 13.90 |
| Feb 24, 2011 | 17.41 | 13.57 |
| Feb 25, 2010 | 17.91 | 11.54 |
| Feb 27, 2009 | 15.41 | 18.11 |
| Feb 28, 2008 | 22.66 | 19.84 |
| Feb 23, 2007 | 25.92 | 22.76 |
| Feb 24, 2006 | 20.83 | 19.23 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Colgate-Palmolive Co., P/E, long-term trends, comparison to industry (consumer staples)
| Colgate-Palmolive Co. | Consumer Staples | |
|---|---|---|
| Feb 16, 2023 | 33.85 | 25.35 |
| Feb 17, 2022 | 30.71 | 26.07 |
| Feb 18, 2021 | 24.79 | 24.12 |
| Feb 21, 2020 | 27.55 | 31.92 |
| Feb 21, 2019 | 23.95 | 20.62 |
| Feb 15, 2018 | 30.80 | 22.78 |
| Feb 23, 2017 | 26.92 | 21.50 |
| Feb 18, 2016 | 43.36 | 21.97 |
| Feb 19, 2015 | 29.21 | 19.71 |
| Feb 20, 2014 | 25.37 | 17.00 |
| Feb 21, 2013 | 21.40 | 16.60 |
| Feb 23, 2012 | 18.41 | 14.81 |
| Feb 24, 2011 | 17.41 | 14.32 |
| Feb 25, 2010 | 17.91 | 14.63 |
| Feb 27, 2009 | 15.41 | 15.52 |
| Feb 28, 2008 | 22.66 | 19.68 |
| Feb 23, 2007 | 25.92 | 19.79 |
| Feb 24, 2006 | 20.83 | 20.04 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).