An independent two-stage DCF analysis by a frontier AI model.
"> Colgate operates in highly mature markets but enjoys immense brand loyalty and pricing power. High single-digit growth is unrealistic without major acquisitions, but 5% is an achievable mix of modest volume growth, price increases, and margin optimization.
"> 10Y Treasury: 4.18%. With a very low beta (typically around 0.4-0.5), Colgate's cost of equity is exceptionally low. A 7% discount rate reflects its status as a defensive, recession-resistant dividend aristocrat.
"> Long-term nominal GDP growth and inflation hover around 2-3%. Assuming a consumer staples giant grows at 2% in perpetuity is a very safe assumption, meaning it simply maintains its purchasing power relative to global inflation over the decades.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 1.0% | 1.5% | 2.0% | 2.5% | 3.0% |
|---|---|---|---|---|---|
| 1.0% | $25.50 | $20.40 | $17.00 | $14.57 | $12.75 |
| 1.5% | $29.14 | $22.67 | $18.55 | $15.69 | $13.60 |
| 2.0% | $34.00 | $25.50 | $20.40 | $17.00 | $14.57 |
| 2.5% | $40.80 | $29.14 | $22.67 | $18.55 | $15.69 |
| 3.0% | $51.00 | $34.00 | $25.50 | $20.40 | $17.00 |
■ Undervalued vs current price ■ Overvalued vs current price
Westmount Research. "Colgate-Palmolive (CL) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, 2026-03-19.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.