Is Colgate-Palmolive Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Colgate-Palmolive Co. moved from very expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 41, an EV to EBITDA of 26.86, and a PEG ratio of 3.10, which suggest that while the company is not undervalued, it is also not excessively priced compared to its peers.
In comparison with its 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 slightly more expensive on a P/E basis but more favorable on the EV to EBITDA metric. Despite the fair valuation, Colgate-Palmolive has underperformed relative to the S&P 500 across multiple time frames, with a 1-year return of -21.30% compared to the S&P 500's 14.08%, highlighting potential concerns for investors.