Colgate-Palmolive Co (CL) is overvalued and Kimberly-Clark Corp (KMB) is undervalued.
Against our estimates of intrinsic value, KMB trades at the wider discount: a margin of safety of +41%, against -64% for CL.
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 9.4% (average of 3 methods) values the shares at $168.21; the price of $98.91 is 41% below that value, and 74% of that value comes from beyond year five.
Leak Score 79/100 on 10 of 12 signals
| Metric | CL | KMB |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $87.05 | $98.91 |
| Intrinsic value | $53.05 | $168.21 |
| Margin of safety | -64% | +41% |
| Leak Score | 55/100 (10/12) | 79/100 (10/12) |
| Market cap | $69.4B | $32.9B |
| Revenue growth, 5 years | 4.3% | -3.0% |
| Operating margin | 21.8% | 14.2% |
| Net margin | 9.7% | 11.8% |
| Return on equity | 434.3% | 111.5% |
| Debt to equity | 33.29 | 3.72 |
| P/E | 34.4x | 16.9x |
| Forward P/E | 21.2x | 13.3x |
| P/B | 294.0x | 18.8x |
| Dividend yield | 2.4% | 5.2% |