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. The company is currently fairly valued based on its valuation metrics. Key ratios include a P/E ratio of 41, an EV to EBITDA of 26.86, and a PEG ratio of 3.10. In comparison, Procter & Gamble Co. has a P/E 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 relative to the S&P 500, with a year-to-date return of -12.97% compared to the index's 13.30%. This underperformance over multiple periods, including a 1-year return of -21.30% against the S&P 500's 14.08%, suggests that while the stock is fairly valued, it may face challenges in generating positive returns in the near term.