Company Overview
Procter & Gamble Co is a US-based consumer products company listed on the New York Stock Exchange. It develops and markets branded goods across categories such as home care, personal care, and hygiene. The company’s portfolio includes many long-standing household brands sold globally. It has about 2.3 billion shares outstanding and a market capitalization of roughly $357 billion.
Analysis of recent data
FundamentalsFor the latest annual period ended June 30 2025, reported USD figures show revenue of $84.28 billion and EBIT of $20.45 billion, representing a modest 0.29% increase from the prior year. Depreciation and amortization were $2.85 billion, and capital expenditure $3.77 billion, indicating steady reinvestment levels.
Cash stood at $9.56 billion against total debt of $25.0 billion, providing a cushion for liquidity while maintaining moderate leverage. The FCFF proxy, excluding working capital changes, was $15.42 billion, suggesting capacity for debt service and reinvestment.
Margins remain strong, with a gross margin of 51.11% and operating margin of 23.58%. Return on equity reached 31.21%, while the net profit margin was 19.3%, reflecting efficient conversion of sales into profit and solid balance-sheet strength.
Valuation
DCF / MultiplesAt $153.63 per share, the stock trades close to its DCF base case. The fair value range is Bear 97.12, Base 150.31, Bull 215.45. This suggests the market already prices in steady cash generation and manageable leverage.
With a trailing PE of 21.7 and a gross margin above 50%, investors appear to expect continued operational consistency rather than rapid expansion. The valuation implies confidence in the company’s ability to sustain free cash flow and maintain financial flexibility.
Conclusion
TakeawayProcter & Gamble’s financial position looks balanced and resilient. The company’s cash flow supports both reinvestment and debt obligations. Its valuation suggests the market expects steady, not spectacular, growth. Long-term returns are likely to follow the pace of its underlying business performance.