US · NYSE · PG
Procter & Gamble (PG) stock analysis: valuation and financials
Consumer Discretionary · Package Goods/Cosmetics
$153.34 +0.1% Price as of Oct 12, 2026
Wide-moat staples franchise: 50.2% gross margin, $15.2B FCF, net debt/EBITDA 1.06x, but 2.0% 3-year revenue CAGR and slipping margins; base case -15.9% vs price. Quality high, valuation demanding.
- Market cap
- $356.1B
- P/E
- 22.2x
- EV/Sales
- 4.4x
- FCF yield
- 4.3%
- 52-week range
- $138.04 – $167.20
- Next earnings
- Oct 22, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth20
- Profitability60
- Cash flow90
- Balance sheet58
- Capital allocation83
- Innovation6
- Valuation58
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
P&G sells branded daily-use consumer goods to retailers, distributors and, increasingly, directly to consumers in about 180 countries; Fabric & Home Care is the profit engine, at 35% of net sales and 35% of net earnings.
Financials by year
| FY2022Jul 2021–Jun 2022 | FY2023Jul 2022–Jun 2023 | FY2024Jul 2023–Jun 2024 | FY2025Jul 2024–Jun 2025 | FY2026Jul 2025–Jun 2026 | |
|---|---|---|---|---|---|
| Revenue | $80.2B | $82.0B | $84.0B | $84.3B | $87.0B |
| Revenue growth | +5.3% | +2.3% | +2.5% | +0.3% | +3.3% |
| Gross margin | 47.4% | 47.9% | 51.4% | 51.2% | 50.2% |
| Operating margin | 22.2% | 22.1% | 22.1% | 24.3% | 22.7% |
| Net income | $14.7B | $14.7B | $14.9B | $16.0B | $16.0B |
| Free cash flow | $13.6B | $13.8B | $16.5B | $14.0B | $15.1B |
| FCF margin | 16.9% | 16.8% | 19.7% | 16.7% | 17.4% |
Amounts in USD · What is free cash flow?
Margins FY2026 gross margin fell 100bps to 50.2% (FY2025 51.2%) and operating margin 160bps to 22.7% (24.3%), worsening through the year: Q4 FY2026 gross margin 48.5% and operating margin 18.6%. Unfavorable product mix (-120bps) and product/packaging investment (-70bps) led the decline; manufacturing productivity added 180bps.
- Cash flow HealthyOperating cash flow $19.6B versus net income $16.1B, cash conversion 1.22x; net earnings plus non-cash items generated about $19.5B, so earnings are fully cash-backed.
- Debt ManageableNet debt $24.2B (total debt $34.1B less cash $9.9B); net debt/EBITDA 1.06x and EBITDA $22.9B, consistent with a moderate leverage profile.
Balance sheet Leverage · Moderate
- Cash & short-term investments
- $9.9B
- Total debt
- $34.1B
- Net debt
- $24.2B
- Net debt / EBITDA
- 1.1x
- Interest coverage
- 22.5x
- Current ratio
- 0.7x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution steady but slow: revenue $87.0B, +3.3% TTM vs 2.0% 3-year CAGR; operating margin 22.7% (-157bp) and gross margin 50.2% (-98bp); FCF $15.2B, 17.4% margin.
- Credibility MediumFY2026 landed inside maintained ranges but near the low end: all-in sales +3.3% vs 1-5% guided, organic +1% vs in-line to +4%, diluted EPS $6.62 (+1.7%) after the January cut from 3-9% growth.
Of 11 guided figures checked: 7 beat, 3 in range, 1 missed.
Valuation range
Implied value per share · Price when researched: $153.34
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.