Colgate-Palmolive Company

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Bernstein Research	Ali Dibadj	ali.dibadj@bernstein.com
CRT Capital Group	April Scee	ascee@sterneageecrt.com
Deutsche Bank Research	Bill Schmitz Jr.	william.schmitz@db.com
Atlantic Equities	Charles Eden	c.eden@atlantic-equities.com
Consumer Edge Research	Javier Escalante	jescalante@consumeredgeresearch.com
William Blair	Jon R. Andersen	jandersen@williamblair.com
Raymond James	Joseph Altobello	joe.altobello@raymondjames.com
First Global Stockbroking	Kavita Thomas	kavita.thomas@fglobal.com
B Riley & Co	Linda Bolton Weiser	lweiser@brileyco.com
Stifel Nicolaus	Mark S. Astrachan	msastrachan@stifel.com
RBC Capital Markets	Nik Modi	nik.modi@rbccm.com
SunTrust Robinson Humphrey	William B. Chappell Jr.	bill.chappell@suntrust.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	2,581	2,574	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	2,258	2,548	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	62	48	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	8,424	8,818	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	30.63%	29.19%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	(640)	837	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	-24.80%	32.52%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	8.49%	7.17%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	6.85%	6.82%
Enterprise value	EV_Market	63,925	61,935	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	64,671	62,925
Long-Run Growth	g = IR x ROIC	-7.60%	9.49%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	24.76%	26.06%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	10.16%	10.06%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	3.99	4.08	5.13%	3.52%	6.04%	4.51%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	14.47	14.07	5.13%	3.52%	6.04%	4.51%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	24.77	24.03	5.13%	3.52%	6.04%	4.51%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	28.31	24.31	5.13%	3.52%	6.04%	4.51%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	16.10	15.64	5.13%	3.52%	6.04%	4.51%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	7.59	7.02	5.13%	3.52%	6.04%	4.51%

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