As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Procter & Gamble Co (PG)
Since its founding in 1837, Procter & Gamble has become one of the world’s largest consumer product manufacturers, generating more than $80 billion in annual sales. It operates with a lineup of leading brands, including more than 20 that generate north of $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. P&G sold its last remaining food brand, Pringles, to Kellogg in calendar 2012. Sales outside its home turf represent around 55% of the firm’s consolidated total, with around one third coming from emerging markets.
A quick look at the share price history (below) over the past twelve months shows that the price is down 11.5%. Here’s why the company is undervalued.
Summary
Market Cap: $326.18 Billion
Enterprise Value: $355.30 Billion
Operating Earnings
Operating Earnings: $17.28 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 20.60
Free Cash Flow (TTM)
Free Cash Flow: $11.57 Billion
FCF/EV Yield %:
FCF/EV Yield: 3.55
Shareholder Yield %:
Shareholder Yield: 5.00
Other Indicators
F-Score: 5.00
ROA (5yrAvge %) : 15
Div Yield: 2.70
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