Colgate Palmolive Price To Earning vs. EBITDA

CL Stock  USD 92.76  1.13  1.20%   
Based on the measurements of profitability obtained from Colgate Palmolive's financial statements, Colgate Palmolive may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Colgate Palmolive's ability to earn profits and add value for shareholders. At this time, Colgate Palmolive's Days Sales Outstanding is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.36 this year, although the value of EV To Sales will most likely fall to 2.26. At this time, Colgate Palmolive's Net Income Applicable To Common Shares is quite stable compared to the past year. Interest Income is expected to rise to about 94.2 M this year, although the value of Operating Income will most likely fall to about 2.5 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.430.5782
Way Down
Very volatile
Net Profit Margin0.080.1182
Way Down
Very volatile
Operating Profit Margin0.140.2048
Way Down
Pretty Stable
Pretax Profit Margin0.130.1743
Way Down
Very volatile
Return On Assets0.10.1403
Way Down
Pretty Stable
For Colgate Palmolive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Colgate Palmolive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Colgate Palmolive utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Colgate Palmolive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Colgate Palmolive over time as well as its relative position and ranking within its peers.
  

Colgate Palmolive's Revenue Breakdown by Earning Segment

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Is Household Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Colgate Palmolive. If investors know Colgate will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Colgate Palmolive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.049
Dividend Share
1.96
Earnings Share
3.48
Revenue Per Share
24.493
Quarterly Revenue Growth
0.024
The market value of Colgate Palmolive is measured differently than its book value, which is the value of Colgate that is recorded on the company's balance sheet. Investors also form their own opinion of Colgate Palmolive's value that differs from its market value or its book value, called intrinsic value, which is Colgate Palmolive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Colgate Palmolive's market value can be influenced by many factors that don't directly affect Colgate Palmolive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Colgate Palmolive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Colgate Palmolive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Colgate Palmolive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Colgate Palmolive EBITDA vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Colgate Palmolive's current stock value. Our valuation model uses many indicators to compare Colgate Palmolive value to that of its competitors to determine the firm's financial worth.
Colgate Palmolive is rated below average in price to earning category among its peers. It is rated fourth in ebitda category among its peers totaling about  173,802,702  of EBITDA per Price To Earning. At this time, Colgate Palmolive's EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Colgate Palmolive by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Colgate EBITDA vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Colgate Palmolive

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
24.43 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Colgate Palmolive

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
4.25 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Colgate EBITDA Comparison

Colgate Palmolive is currently under evaluation in ebitda category among its peers.

Colgate Palmolive Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Colgate Palmolive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Colgate Palmolive will eventually generate negative long term returns. The profitability progress is the general direction of Colgate Palmolive's change in net profit over the period of time. It can combine multiple indicators of Colgate Palmolive, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3.9 B-3.7 B
Operating IncomeB2.5 B
Income Before Tax3.4 B2.2 B
Total Other Income Expense Net-592 M-562.4 M
Net Income2.3 B1.7 B
Income Tax Expense937 M706 M
Net Income Applicable To Common Shares2.1 B2.1 B
Net Income From Continuing Ops2.5 B1.9 B
Interest Income55 M94.2 M
Net Interest Income-232 M-243.6 M
Change To Netincome885.5 M929.8 M
Net Income Per Share 2.78  2.92 
Income Quality 1.63  1.67 
Net Income Per E B T 0.68  0.51 

Colgate Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Colgate Palmolive. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Colgate Palmolive position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Colgate Palmolive's important profitability drivers and their relationship over time.

Use Colgate Palmolive in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Colgate Palmolive position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Colgate Palmolive will appreciate offsetting losses from the drop in the long position's value.

Colgate Palmolive Pair Trading

Colgate Palmolive Pair Trading Analysis

The ability to find closely correlated positions to Colgate Palmolive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Colgate Palmolive when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Colgate Palmolive - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Colgate Palmolive to buy it.
The correlation of Colgate Palmolive is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Colgate Palmolive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Colgate Palmolive moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Colgate Palmolive can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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For more information on how to buy Colgate Stock please use our How to buy in Colgate Stock guide.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project Colgate Palmolive's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Colgate Palmolive at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Colgate Palmolive's income statement, its balance sheet, and the statement of cash flows.
Potential Colgate Palmolive investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Colgate Palmolive investors may work on each financial statement separately, they are all related. The changes in Colgate Palmolive's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Colgate Palmolive's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.