Is Colgate-Palmolive Co. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Colgate-Palmolive Co. moved from fair to expensive. The company appears overvalued based on its elevated valuation ratios, including a P/E ratio of 41, a Price to Book Value of 354.55, and an EV to EBITDA of 26.86. 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 trading at a premium relative to its peer.
Despite a strong ROE of 868.55% and a solid ROCE of 60.76%, these figures do not justify the high valuation ratios, suggesting that the stock may be priced too high given its performance metrics. Over the past year, Colgate-Palmolive has underperformed the S&P 500, with a return of -13.23% compared to the index's 12.65%, reinforcing the notion that the stock is currently overvalued.