DCF Studio

    CLX · NYQ · Consumer Defensive

    The Clorox Company

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 98.30

    Market price

    USD 89.90

    Implied upside

    +9.3%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-06-30

    Value Per Share

    Perpetuity growth
    USD 98.30+9.3%
    Exit multiple
    USD 101.07+12.4%
    Market price
    USD 89.90

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0m432m864mFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
    Nominal FCFFDiscounted to todayUSD
    LineFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36CAGR
    RevenueUSD 7.6bnUSD 7.8bnUSD 8.0bnUSD 8.2bnUSD 8.4bnUSD 8.6bnUSD 8.8bnUSD 9.0bnUSD 9.2bnUSD 9.5bn+2.4%
    EBITUSD 974.4mUSD 997.0mUSD 1.0bnUSD 1.0bnUSD 1.1bnUSD 1.1bnUSD 1.1bnUSD 1.1bnUSD 1.2bnUSD 1.2bn+2.4%
    NOPATUSD 769.8mUSD 787.6mUSD 806.0mUSD 825.1mUSD 844.8mUSD 865.1mUSD 886.1mUSD 907.9mUSD 930.4mUSD 953.6m+2.4%
    Add depreciation & amortisationUSD 253.0mUSD 258.9mUSD 265.0mUSD 271.2mUSD 277.7mUSD 284.4mUSD 291.3mUSD 298.4mUSD 305.8mUSD 313.5m+2.4%
    Less capital expenditureUSD -233.7mUSD -248.2mUSD -263.4mUSD -279.2mUSD -295.7mUSD -312.8mUSD -330.7mUSD -349.3mUSD -368.8mUSD -389.1m+5.8%
    Capex, % of revenue3.1%3.2%3.3%3.4%3.5%3.6%3.8%3.9%4.0%4.1%-
    Less increase in working capitalUSD -53.7mUSD -10.4mUSD -10.8mUSD -11.1mUSD -11.5mUSD -11.9mUSD -12.3mUSD -12.7mUSD -13.2mUSD -13.6m-14.1%
    Free cashflow to firmUSD 735.4mUSD 787.8mUSD 796.8mUSD 806.0mUSD 815.3mUSD 824.8mUSD 834.4mUSD 844.3mUSD 854.3mUSD 864.4m+1.8%
    Discount factor0.96800.90710.85010.79660.74650.69960.65560.61430.57570.5395-
    Present valueUSD 711.9mUSD 714.7mUSD 677.4mUSD 642.0mUSD 608.6mUSD 577.0mUSD 547.0mUSD 518.6mUSD 491.8mUSD 466.3m-
    Present Value Of The ForecastUSD 6.0bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.719Reported 0.581, pulled toward 1.0 (Blume)
    Cost of equity7.94%Risk-free + beta x equity risk premium
    Cost of debt5.44%Risk-free + 55bp, the spread for a AA rating at 6.8x interest cover. Book interest / average debt was lower, at 3.1%.
    Market capitalisationUSD 10.9bn66.3% of capital
    Total debtUSD 5.5bn33.7% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC6.71%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 98.30

    66% of EV

    Forecast FCFF, final year
    USD 864.4m
    Capex at depreciation, working capital in reinvestment
    USD 982.2m
    Less reinvestment at g/ROIC (11.4% of NOPAT)
    USD -111.7m
    Capitalised
    USD 870.5m
    ROIC (reported)
    22.0%
    Terminal value, undiscounted
    USD 21.2bn
    Terminal value, discounted
    USD 11.4bn
    Enterprise value
    USD 17.4bn
    Less net debt
    USD 5.4bn
    Equity value
    USD 12.0bn

    Exit at 14.3x EBITDA

    Value per shareUSD 101.07

    66% of EV

    Terminal value, undiscounted
    USD 21.8bn
    Terminal value, discounted
    USD 11.8bn
    Enterprise value
    USD 17.7bn
    Less net debt
    USD 5.4bn
    Equity value
    USD 12.3bn

    Spread between methods: 3%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    4.71%163.37187.38222.47278.35380.75
    5.71%114.60125.99141.08161.90192.36
    6.71%84.5690.6598.30108.13121.16
    7.71%64.1967.6871.9177.1383.70
    8.71%49.4851.5454.0056.9560.56

    Outlined: this model. Green text: above today's price of 89.90. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year-3.1%3.5%2.7%
    EBIT margin16.6%12.8%12.0%
    Discount rate-6.7%7.0%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.