CLX
The Clorox Company
$95.80
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 16.0% below fair value
You pay
$95.80
Bear
$93.94
Fair
$114.06
Bull
$134.20
Bear
$93.94
-1.9%
$6.88 × 14x P/E
Fair
$114.06
+19.1%
$6.88 × 17x P/E
Bull
$134.20
+40.1%
$6.88 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
13.9x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $105.50 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $114.06 per share.
Warnings
Dividend-based valuation: $75.51 (below our primary estimate by 35%). Large gaps may signal the dividend doesn't reflect full earning power.
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