There’s Reason For Concern Over Colgate-Palmolive Company’s (NYSE:CL) Price
Colgate-Palmolive Company’s (NYSE:CL) price-to-earnings (or “P/E”) ratio of 22.3x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E’s below 11x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
Colgate-Palmolive could be doing better as it’s been growing earnings less than most other companies lately. It might be that many expect the uninspiring earnings performance to recover significantly, which has kept the P/E from collapsing. …
