Stock Analysis on Net

Colgate-Palmolive Co. (NYSE:CL)

This company has been moved to the archive! The financial data has not been updated since July 28, 2023.

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Colgate-Palmolive Co., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to Colgate-Palmolive Company 1,785 2,166 2,695 2,367 2,400
Net income attributable to noncontrolling interests 182 172 165 160 158
Net noncash charges 1,315 1,184 478 541 653
Cash effects of changes in assets and liabilities (726) (197) 381 65 (155)
Net cash provided by operations 2,556 3,325 3,719 3,133 3,056
Interest paid, net of tax1 112 147 147 142 148
Interest capitalized, net of tax2 4 2 1 1 2
Capital expenditures (696) (567) (410) (335) (436)
Free cash flow to the firm (FCFF) 1,975 2,907 3,457 2,940 2,769

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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Colgate-Palmolive Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Colgate-Palmolive Co. FCFF decreased from 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

Colgate-Palmolive Co., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR1 26.10% 24.30% 21.60% 23.40% 23.90%
Interest Paid, Net of Tax
Interest paid, before tax 151 194 188 185 194
Less: Interest paid, tax2 39 47 41 43 46
Interest paid, net of tax 112 147 147 142 148
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 5 3 1 1 2
Less: Interest capitalized, tax3 1 1
Interest capitalized, net of tax 4 2 1 1 2

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).

1 See details »

2 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 151 × 26.10% = 39

3 2022 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 5 × 26.10% = 1


Enterprise Value to FCFF Ratio, Current

Colgate-Palmolive Co., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 70,910
Free cash flow to the firm (FCFF) 1,975
Valuation Ratio
EV/FCFF 35.90
Benchmarks
EV/FCFF, Competitors1
Procter & Gamble Co. 28.55
EV/FCFF, Industry
Consumer Staples 36.55

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Colgate-Palmolive Co., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 68,823 73,300 73,870 72,618 63,413
Free cash flow to the firm (FCFF)2 1,975 2,907 3,457 2,940 2,769
Valuation Ratio
EV/FCFF3 34.84 25.21 21.37 24.70 22.90
Benchmarks
EV/FCFF, Competitors4
Procter & Gamble Co. 26.63 22.86 23.81 25.13 19.59
EV/FCFF, Industry
Consumer Staples 32.43 21.67 24.49 24.78

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).

1 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 68,823 ÷ 1,975 = 34.84

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Colgate-Palmolive Co. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.