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DCF valuation

What is Colgate Palmolive Co worth?

With the base-case assumptions below, a discounted cash flow model on Colgate Palmolive Co's reported free cash flow gives $71.57 per share. The share price was $86.06 on September 25, 2026, 20% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$3.63B
Average free cash flow, last 5 years
$2.97B
Cash
$1.37B
balance sheet of June 30, 2026
Debt
$7.82B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
811,100,000
Revenue growth per year, last 5 years
4.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-0.5%0.5%2.0%10.0%$41.24-52%
Base4.5%3.5%2.5%9.0%$71.57-17%
Bull9.5%6.5%3.0%8.0%$130.62+52%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$93.17$99.73$107.74$117.76$130.64
8.0%$77.08$81.33$86.35$92.39$99.76
9.0%$65.30$68.21$71.57$75.48$80.11
10.0%$56.32$58.39$60.73$63.41$66.50
11.0%$49.25$50.77$52.46$54.37$56.53

Where the presets come from

Base: years 1 to 5 grow at Colgate Palmolive Co's revenue growth rate over the last 5 fiscal years (4.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Colgate Palmolive Co company page