US Equities Analysis

PG — Procter & Gamble

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 23.05%
Profit Margins 19.16%
Return on Equity 31.11%
Return on Assets 10.93%
Free Float 2.32B
Dividend Yield 2.86%
Short Int % Utilisation 1.17%

2.2 Growth

Metric Value
Revenue Growth 7.4%
Free Cash Flow 12.73B
EBITDA 14.89 (Ratio)
Enterprise Value 372.78B
EV/Revenue 4.3
EV/EBITDA 14.89

Revenue growth of 7.4% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -1.75%
Risk / Std Dev (Ann.)* 19.71%
1-Year Price Return* -3.60%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $144.55
52-Week Range $137.62 – $167.25
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $87.03B
Prior annual revenue $84.28B
EBIT $21.25B
Tax rate 20.77%
NOPAT = EBIT × (1 − tax rate) $16.84B
Forecast start-growth basis 3.26%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $16.84B
Add: depreciation & amortisation $3.16B
Less: capital expenditure -$4.41B
Less/(add): working-capital cash-flow movement $362.00M
Current unlevered FCFF $15.95B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 3.26% $17.39B $3.26B -$4.55B $373.80M $16.47B $15.97B
2 3.07% $17.92B $3.36B -$4.36B $385.28M $17.31B $15.79B
3 2.88% $18.44B $3.46B -$4.14B $396.38M $18.15B $15.57B
4 2.69% $18.93B $3.55B -$3.90B $407.04M $18.99B $15.32B
5 2.50% $19.41B $3.64B -$3.64B $417.22M $19.82B $15.04B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.38
Cost of equity 6.79%
Pre-tax cost of debt 2.49%
WACC 6.33%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $530.75B
Implied terminal EV / EBITDA 18.86x
Terminal value as % of enterprise value 83.41%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $77.69B
Present value of terminal value $390.52B
Indicated enterprise value $468.21B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $468.21B
Less: gross interest-bearing debt $35.03B
Add: cash and equivalents $9.94B
Add: affiliate investments $0.00
Less: minority interests $230.00M
Indicated common equity value $442.89B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 2,422,500,000.00
Share-count basis reported diluted weighted-average shares
Current market price $143.43
DCF indicative value per share $182.83
Indicative value vs. market price 27.47%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:45:34.510568 UTC; latest reported fiscal period: 2026-06-30 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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