Equity Valuation

: Colgate-Palmolive Company

Abstract

The purpose of this dissertation is to determine the intrinsic value of the operations of the multinational Soap and Cleaning Materials company, Colgate-Palmolive Company. The study focuses on recommending a buyer or seller position based on the company’s estimated share price compared to the actual trading price. In times of uncertainty caused by the COVID-19 global health crisis, Colgate has been able to maintain its growth strategy and its objective to become more efficient through a mix of investments in innovation and high-growth segments and cost-saving initiatives. Therefore, the literature review concluded that the FCFF model is the most suitable approach to value the company complemented with a Relative Valuation to obtain more accurate financial forecasts.The result of this dissertation is a value of USD 107,46 per share, representing a buy recommendation compared to the current market price on November 9th of USD 78,05. In addition, a comparison with The Street Rating Stock Report on Colgate, which estimated a share price of USD 89,6, was also performed to test the consistency of the variables considered.

Date of Award	28 Apr 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)