Report
Valens Research

PG - Embedded Expectations Analysis - 2019 09 27

The Procter & Gamble Company (PG:USA) is currently trading near historical averages relative to UAFRS-based (Uniform) Earnings, with a 27.2x Uniform P/E. At these levels, the market is expecting the firm to see Uniform ROA to expand to nearly double prior peaks, and management is confident about their international growth, product strength, and their advertising efforts.

Specifically, management is confident that their strong results are the result of their international growth and that they have invested in strengthening their products in growth markets. Furthermore, they are confident Tide has won the Grand Effie Award, and their advertising efforts reach effectively across multiple mediums. Finally, they are confident that they will continue to drive their superiority in their product positioning, and they are confident in their initiative to simplify their organization.
Underlying
Procter & Gamble Company

Procter & Gamble provides consumer packaged goods. The company's products are sold primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, beauty stores, other stores and pharmacies. The company has five reportable segments: Beauty, which includes hair care, and skin and personal care products; Grooming, which includes shave care products; Health Care, which includes oral care and personal health care products; Fabric and Home Care, which includes fabric care and home care products; and Baby, Feminine and Family Care, which includes baby care, feminine care and family care products.

Provider
Valens Research
Valens Research

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  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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