Why Procter & Gamble Co (PG) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

Procter & Gamble Co (PG)

Since its founding in 1837, Procter & Gamble has become one of the world’s largest consumer product manufacturers, generating more than $80 billion in annual sales. It operates with a lineup of leading brands, including more than 20 that generate north of $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. P&G sold its last remaining food brand, Pringles, to Kellogg in calendar 2012. Sales outside its home turf represent around 53% of the firm’s consolidated total.

A quick look at the share price history (below) over the past twelve months shows that the price is up 6.29%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

Market Cap: $389.58 Billion

Enterprise Value: $415.82 Billion

Operating Earnings

Operating Earnings: $20.24 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 20.60

Free Cash Flow (TTM)

Free Cash Flow: $16.16 Billion

FCF/EV Yield %:

FCF/EV Yield: 4.15

Shareholder Yield %:

Shareholder Yield: 2.90

Other Indicators

Piotroski F Score: 8.00

Dividend Yield: 2.30

ROA (5 Year Avge%): 17