08-28-2014, 01:04 PM
I too came up with a ttm P/E of 22 using GAAP reported earnings. Have no idea if there were any extraordinary items in there.
I think part of the slightly higher valuation over its peers (PG seeming to be the natural first pick as a rival) is because of a myriad reasons. 1.) CL, at first glance, was the faster grower of the last couple of decades. I would guess that there is more growth expected out of CL than PG in the near future also. 2.) I think they became better positioned than PG in emerging markets. 3.) Their dividend growth rate has been slightly higher than PG's according to longrundata. 4.) Fewer "stumbles" with products/pricing/acceptance than PG. There are probably many more reasons and it's as much perception as reality.
If I was going to pay those multiples, I'd be leaning more to CHD than CL, but their starting yield is even lower yet a very interesting growth story. Of course, higher growth can lead to a misstep that could cause the price to be more volatile.
I think part of the slightly higher valuation over its peers (PG seeming to be the natural first pick as a rival) is because of a myriad reasons. 1.) CL, at first glance, was the faster grower of the last couple of decades. I would guess that there is more growth expected out of CL than PG in the near future also. 2.) I think they became better positioned than PG in emerging markets. 3.) Their dividend growth rate has been slightly higher than PG's according to longrundata. 4.) Fewer "stumbles" with products/pricing/acceptance than PG. There are probably many more reasons and it's as much perception as reality.
If I was going to pay those multiples, I'd be leaning more to CHD than CL, but their starting yield is even lower yet a very interesting growth story. Of course, higher growth can lead to a misstep that could cause the price to be more volatile.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan