Is Procter & Gamble Co. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Procter & Gamble Co. has moved from expensive to fair. Based on the analysis, the company appears to be fairly valued. Key valuation ratios include a P/E ratio of 41, a Price to Book Value of 12.55, and an EV to EBITDA of 30.25. In comparison, Colgate-Palmolive Co. has a P/E of 38.13 and an EV to EBITDA of 25.44, indicating that Procter & Gamble is slightly more expensive than its peer.
Despite this fair valuation, Procter & Gamble's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -6.16% compared to the S&P 500's 12.22%. Over the past three years, the company has returned 13.77%, significantly lower than the S&P 500's 70.41%, suggesting that while the stock may be fairly valued, its performance has not met market expectations.