Procter & Gamble Co., FCFE calculation

US$ in millions

12 months ended:	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net earnings attributable to Procter & Gamble (P&G)	16,046)	15,974)	14,879)	14,653)	14,742)	14,306)
Net earnings attributable to noncontrolling interests	98)	91)	95)	85)	51)	46)
Net noncash charges	3,050)	2,573)	4,830)	2,983)	2,442)	3,279)
Change in operating assets and liabilities	362)	(821)	42)	(873)	(512)	740)
Operating activities	19,556)	17,817)	19,846)	16,848)	16,723)	18,371)
Capital expenditures	(4,409)	(3,773)	(3,322)	(3,062)	(3,156)	(2,787)
Additions to short-term debt with original maturities of more than three months	7,941)	8,020)	3,528)	17,168)	10,411)	7,675)
Reductions in short-term debt with original maturities of more than three months	(9,984)	(6,512)	(7,689)	(13,031)	(11,478)	(7,577)
Net additions (reductions) to other short-term debt	2,674)	(1,138)	857)	(3,319)	917)	(3,431)
Additions to long-term debt	2,652)	2,237)	3,197)	3,997)	4,385)	4,417)
Reductions of long-term debt	(3,390)	(1,977)	(2,335)	(1,878)	(2,343)	(4,987)
Free cash flow to equity (FCFE)	15,040)	14,674)	14,082)	16,723)	15,459)	11,681)

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

An analysis of the cash flow metrics reveals a period of fluctuation in operating activities contrasted with a general upward trajectory in free cash flow to equity (FCFE) over the observed period. While operating cash flows exhibit volatility, FCFE demonstrates a higher baseline relative to 2021 levels, suggesting improved capital efficiency or changes in net borrowing and capital expenditure patterns.

Operating Activities Trends: Cash flow from operating activities shows a non-linear progression. After a decline from US$ 18,371 million in 2021 to US$ 16,723 million in 2022, a recovery phase is observed, peaking at US$ 19,846 million in 2024. A subsequent dip to US$ 17,817 million in 2025 is followed by a projected increase to US$ 19,556 million by 2026, indicating a cyclical pattern in operational cash generation.
Free Cash Flow to Equity (FCFE) Dynamics: FCFE experienced significant growth between 2021 and 2023, rising from US$ 11,681 million to a peak of US$ 16,723 million. A contraction occurred in 2024, where FCFE fell to US$ 14,082 million, despite that year marking the highest point for operating activities. From 2024 through 2026, a steady incremental recovery is observed, with values projected to reach US$ 15,040 million.
Conversion and Correlation Analysis: The relationship between operating activities and FCFE varies considerably. In 2023, FCFE nearly equaled operating cash flow, suggesting minimal capital expenditures and limited net debt repayment. Conversely, in 2024, a divergence is noted where operating cash flow increased while FCFE decreased, implying a higher allocation of cash toward capital investments or a reduction in net debt issuance during that period.

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Procter & Gamble Co., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	2,324,433,060
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	15,040)
FCFE per share	6.47
Current share price (P)	145.79
Valuation Ratio
P/FCFE	22.53
Benchmarks
P/FCFE, Industry
Consumer Staples	36.26

Based on: 10-K (reporting date: 2026-06-30).

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

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

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
No. shares of common stock outstanding¹	2,324,433,060	2,342,371,488	2,354,050,987	2,357,306,187	2,389,553,883	2,427,424,874
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	15,040)	14,674)	14,082)	16,723)	15,459)	11,681)
FCFE per share³	6.47	6.26	5.98	7.09	6.47	4.81
Share price^1, 4	148.01	150.76	168.06	155.28	144.72	141.41
Valuation Ratio
P/FCFE⁵	22.87	24.07	28.09	21.89	22.37	29.39
Benchmarks
P/FCFE, Industry
Consumer Staples	—	33.00	32.08	24.17	25.27	24.83

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 15,040,000,000 ÷ 2,324,433,060 = 6.47

⁴ Closing price as at the filing date of Procter & Gamble Co. Annual Report.

⁵ 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 148.01 ÷ 6.47 = 22.87

An analysis of the valuation metrics between 2021 and 2026 reveals a fluctuating relationship between the share price and the Free Cash Flow to Equity (FCFE) per share. The Price to FCFE (P/FCFE) ratio exhibits significant volatility, starting at a peak of 29.39 in 2021, declining to a minimum of 21.89 in 2023, and subsequently spiking in 2024 before stabilizing toward 2026.

Share Price Trends: A consistent upward trajectory is observed from 2021 to 2024, with the share price increasing from 141.41 US$ to a peak of 168.06 US$. Following this peak, a corrective trend emerges, with the price declining to 150.76 US$ in 2025 and further to 148.01 US$ by 2026.
FCFE per Share Dynamics: FCFE per share demonstrated strong growth in the early period, rising from 4.81 US$ in 2021 to 7.09 US$ in 2023. A notable contraction occurred in 2024, where the value dropped to 5.98 US$. A gradual recovery is evident in the subsequent years, with projections returning to 6.47 US$ by 2026.
P/FCFE Ratio Interpretation: The P/FCFE ratio experienced a marked compression between 2021 and 2023, driven primarily by the rapid growth of FCFE per share outweighing the moderate increase in share price. The sharp increase in the ratio to 28.09 in 2024 is attributed to the convergence of a record-high share price and a simultaneous decline in FCFE per share. By 2026, the ratio is expected to normalize to 22.87, reflecting a more balanced alignment between market valuation and cash flow generation.

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Procter & Gamble Co. (NYSE:PG)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical