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The Clorox Company (0I0J.L)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$58.29 - $88.99$72.66
Multi-Stage$86.54 - $94.58$90.48
Blended Fair Value$81.57
Current Price$123.30
Upside-33.84%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS2.46%4.57%4.864.804.714.614.504.303.963.633.333.21
YoY Growth--1.18%2.06%2.10%2.33%4.69%8.78%8.89%9.22%3.52%3.38%
Dividend Yield--3.94%2.95%3.59%3.59%2.72%2.05%2.60%2.41%2.52%2.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)791.00
(-) Cash Dividends Paid (M)602.00
(=) Cash Retained (M)189.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)158.2098.8859.33
Cash Retained (M)189.00189.00189.00
(-) Cash Required (M)-158.20-98.88-59.33
(=) Excess Retained (M)30.8090.13129.68
(/) Shares Outstanding (M)123.87123.87123.87
(=) Excess Retained per Share0.250.731.05
LTM Dividend per Share4.864.864.86
(+) Excess Retained per Share0.250.731.05
(=) Adjusted Dividend5.115.595.91
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.31%1.31%2.31%
Fair Value$58.29$72.66$88.99
Upside / Downside-52.72%-41.07%-27.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)791.00801.34811.82822.43833.18844.08869.40
Payout Ratio76.11%78.88%81.66%84.44%87.22%90.00%92.50%
Projected Dividends (M)602.00632.14662.96694.48726.71759.67804.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.31%1.31%2.31%
Year 1 PV (M)573.70579.42585.14
Year 2 PV (M)546.06557.00568.05
Year 3 PV (M)519.14534.82550.82
Year 4 PV (M)493.02512.98533.53
Year 5 PV (M)467.73491.52516.26
PV of Terminal Value (M)8,119.878,532.778,962.30
Equity Value (M)10,719.5211,208.5111,716.10
Shares Outstanding (M)123.87123.87123.87
Fair Value$86.54$90.48$94.58
Upside / Downside-29.82%-26.61%-23.29%

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