View Full Version : Colgate company worth investing?

baller18

18-08-2013, 05:46 PM

Hey guys,

I see colgate as a company which will still be dominating the business in ten years time, therefore, it has caught my interest to possibly invest in colgate.

1. Will still be dominating the business 10 years from now, tooth brushes, mouthwash, toothpaste and etc.

2. It has a gross profit margin of 58%

3. SGA expenses below 30%

4. Every year have increased dividends

5. Buyback of shares have increased every year.

6. Consistent increase in book value and EPS

7. Worked out intrinsic value in ten years time to be $100, whereas, the current SP is at $60.

Thoughts from members?

Thanks

baller18

18-08-2013, 07:59 PM

Not a bad company to own - some excellent brands.

Expensive on the PEG Ratio - over 2.5. How do you see value on this at the moment? It has a growth rate of around 9% for the next five years (says Yahoo) and a P/E of almost 25.

You are very right it seems expensive on the PEG ratio side.

From using Graham's intrinsic calculator,

V = (2.39 X (8.5 + 2x7) x 4.4) / 2.6 we get a value of $91 dollars, being conservative with growth at 7%.

So, how do I put it together if the intrinsic value is favorable but the PEG ratio is not?

What do I have to go on nowm to make my call? because with the above factors I mentioned, such as, being a dominating business in 10 years time, increased dividends every year, increased buy backs and etc. Seems like this really fits into the long term hold plan

winner69

18-08-2013, 08:33 PM

You are very right it seems expensive on the PEG ratio side.

From using Graham's intrinsic calculator,

V = (2.39 X (8.5 + 2x7) x 4.4) / 2.6 we get a value of $91 dollars, being conservative with growth at 7%.

So, how do I put it together if the intrinsic value is favorable but the PEG ratio is not?

What do I have to go on nowm to make my call? because with the above factors I mentioned, such as, being a dominating business in 10 years time, increased dividends every year, increased buy backs and etc. Seems like this really fits into the long term hold plan

Think through the maths of the graham formula baller

What is it really saying?

baller18

18-08-2013, 08:52 PM

Think through the maths of the graham formula baller

What is it really saying?

I'm a bit lost here, to be honest winner...

Please explain or give me signs to go on in regards to answering your questions.

Thanks!!

baller18

19-08-2013, 12:39 PM

Can someone please help me out here... Or give me directions pelase!

winner69

19-08-2013, 12:43 PM

Sorry baller ...later on

born2invest

19-08-2013, 03:11 PM

Can someone explain to me what the numbers in the calculation refer to?

V = (2.39 X (8.5 + 2x7) x 4.4) / 2.6

Can someone explain to me what the numbers in the calculation refer to?

V = (2.39 X (8.5 + 2x7) x 4.4) / 2.6 helpful link (http://googleitfor.me/?q=Graham%27s+intrinsic+calculator&l=1)

baller18

19-08-2013, 03:31 PM

No worries winner.

Thanks sparky!!!!

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