Procter & Gamble Stock Has Risen A Strong 1.7x Since 2018: Here’s Why

+4.70%
Upside
146
Market
153
Trefis
PG: Procter & Gamble logo
PG
Procter & Gamble

Procter & Gamble (NYSE: PG) stock price gained 69% from $92 in 2018 end, to around $155 currently, primarily due to favorable changes in its P/S multiple. Additionally, the company witnessed a rise in revenue over this period, and revenue per share has increased, aided by a drop in the outstanding share count.

In our interactive dashboard, Why Procter & Gamble Stock Moved: PG Stock Has Gained 69% Since 2018, we break down the factors behind this move.

(A) PG’s Total Revenue has grown 17% from $66.8 billion in 2018 to $78.3 billion on an LTM basis

  • PG’s total revenue has risen steadily from $66.8 billion in FY ’18 to $76.1 billion in FY ’21 (PG’s fiscal year ends in June), and currently stands at $78.3 billion on an LTM basis.
  • As of FY ’21, PG’s largest segment is Fabric & Home Care, contributing to $26 billion to total sales, making up almost 35% of the company’s revenues.
  • Additionally, the health care segment has been the fastest growing segment of late, with sales rising more than 20% between FY ’19 and FY ’21, bringing in almost $10 billion as of FY ’21.
  • For details about PG revenues and comparison to peers, see Procter & Gamble (PG) Revenue Comparison
Relevant Articles
  1. Despite Steady Gains, Procter & Gamble Stock Has Underperformed The S&P 500 Since 2018
  2. Company Of The Day: Proctor & Gamble
  3. Surging Prices Bode Well For These Stocks
  4. Procter & Gamble Stock Has Risen 1.7x Since 2018 – Well Deserved?
  5. Despite High Current Valuations, Estee Lauder Stock Looks Like A Strong Bet
  6. Estee Lauder Stock Is A Good Bet, Even At These Valuations

(B) Revenue per share (RPS) increased 24% from $25.70 in 2018 to $31.91 currently

  • PG revenue rose from $66.8 billion in 2018 to $78.3 billion currently, while the outstanding share count decreased from 2.6 billion in 2018 to 2.5 billion currently.
  • Due to this, RPS has risen from $25.70 in FY ’18 to $31.91 currently.

(C) Price-To-Sales (P/S) multiple for PG rose strongly from 3.3x in 2018 to 5.2x by 2021 end but has pulled back to 4.9x currently, still around 1.5x higher than its 2018 level

  • Due to PG’s consistent performance since 2018-end, its P/S multiple rose steadily from 3.3x in 2018 to 5.2x in 2021.
  • However, amidst current geopolitical tensions dragging down the broader markets, the P/S multiple has pulled back slightly and currently stands at around 4.9x.
  • For additional details about the company stock returns and comparison to peers, see Procter & Gamble (PG) Stock Return Comparison.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Mar 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 PG Return 0% -5% 85%
 S&P 500 Return 6% -3% 107%
 Trefis MS Portfolio Return 5% -6% 270%

[1] Month-to-date and year-to-date as of 3/30/2022
[2] Cumulative total returns since the end of 2016

 

Invest with Trefis Market Beating Portfolios

See all Trefis Price Estimates