The Procter & Gamble Company PG

At about $149.61 (June 19, 2026), P&G trades near 22x trailing earnings — roughly 12% below its own ten-year median of about 25x, and below peers like Colgate (~24x) and Coca-Cola (~26x). The market is paying mostly for certainty: a 70-year streak of dividend increases, gross margins near 50%, and about $15 billion of trailing free cash flow. What that multiple does not price in is an acceleration; it assumes durable low-single-digit growth and no re-rating.

For most of fiscal 2026, mostly prices and currency. Organic sales went +2%, then +2%, then 0% in the December quarter, before recovering to +3% in the quarter ended March 31, 2026 — and only in that March quarter did volume (units sold) turn positive (+2%), the first company-wide volume growth in about a year. In March, core profit rose 3% but was flat once currency is stripped out: every cent of the growth came from foreign exchange, not the underlying business.

P&G pays $4.35 per share annually (a quarterly $1.0885, raised about 3% in April 2026), a yield near 2.8% at ~$150. April 2026 marked the 70th consecutive year of dividend increases — among the longest streaks in the market, with payments unbroken since 1890. The company plans roughly $10 billion of dividends and $5 billion of buybacks in fiscal 2026, against about $15 billion of trailing free cash flow, so the payout is comfortably covered by cash generation.

Costs are the clearest risk. P&G has flagged roughly $500 million of tariff headwinds for fiscal 2026, and warned at a June 10, 2026 conference that a sustained ~$100 oil price could add around $1 billion of after-tax cost in fiscal 2027. Layered on top: volume that only just turned positive, soft demand in Greater China, private-label competition, and reported gross and operating margins that each fell about 150 basis points in the March quarter despite productivity savings.