Is Colgate-Palmolive Co. overvalued or undervalued?

As of 1 August 2025, the valuation grade for Colgate-Palmolive Co. has moved from expensive to fair. The company is currently fairly valued based on its valuation ratios, which include a P/E ratio of 41, a Price to Book Value of 354.55, and an EV to EBITDA of 26.86. In comparison to peers, Procter & Gamble Co. has a P/E ratio of 38.51 and an EV to EBITDA of 28.49, indicating that Colgate-Palmolive is competitively positioned within its industry.
Despite its fair valuation, Colgate-Palmolive has underperformed against the S&P 500, with a year-to-date return of -10.32% compared to the index's 12.22%. This trend is further reflected in the one-year return of -20.98% against the S&P 500's 17.14%, suggesting that while the stock is fairly valued, it may face challenges in the current market environment.