Colgate-Palmolive Co (CL) is overvalued and Estee Lauder Cos. Inc (EL) is overvalued.
Both trade above our estimate of their intrinsic value. CL is the closer of the two: -64%, against -404% for EL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $53.05; the price of $87.05 is 64% above that value, and 81% of that value comes from beyond year five.
Leak Score 55/100 on 10 of 12 signals
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $19.92; the price of $100.29 is 404% above that value, and 72% of that value comes from beyond year five.
Leak Score 35/100 on 8 of 12 signals
| Metric | CL | EL |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $87.05 | $100.29 |
| Intrinsic value | $53.05 | $19.92 |
| Margin of safety | -64% | -404% |
| Leak Score | 55/100 (10/12) | 35/100 (8/12) |
| Market cap | $69.4B | $36.3B |
| Revenue growth, 5 years | 4.3% | -1.5% |
| Operating margin | 21.8% | 11.2% |
| Net margin | 9.7% | 1.2% |
| Return on equity | 434.3% | 4.8% |
| Debt to equity | 33.29 | 2.43 |
| P/E | 34.4x | 201.6x |
| Forward P/E | 21.2x | 25.5x |
| P/B | 294.0x | 9.5x |
| Dividend yield | 2.4% | 1.5% |