CLX
The Clorox Company
$85.00
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 4.0% above fair value
You pay
$85.00
Bear
$67.34
Fair
$81.77
Bull
$96.20
Bear
$67.34
-20.8%
$4.81 × 14x P/E
Fair
$81.77
-3.8%
$4.81 × 17x P/E
Bull
$96.20
+13.2%
$4.81 × 20x P/E
Adjust Assumptions
17.0x
4.81$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
17.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (29 analysts)
$100.11
Divergence from AlphaVal
18%
Summary
Applying a 17x P/E to adjusted EPS of $4.81, the base-case value is $81.77 per share. DDM cross-check: $75.10.
Warnings
The company pays out 103% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples