@parkevtatevosiancfa9544
YouTube
Avg. Quality
75
Success Rate
17.22
Analysis
546
Correct
94
Fail
281
Pending
169
Ineffective
0
Total Quality
Score
If You Had Traded on This Analysis…
Pending
PG
Long Entry
140.7400
2025-12-11
22:45 UTC
Target
177.5200
Fail
125.0100
Risk/Reward
1 : 2
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The analysis focuses on Procter & Gamble (PG) stock, currently trading near its 52-week low. The recent price decline is attributed to increasing tariffs, leading to higher costs of goods sold, and heightened competition from lower-priced store-branded products, especially as budget-constrained consumers opt for more economical alternatives. Despite these immediate challenges, P&G demonstrates robust long-term financial performance. Revenue growth has accelerated from low single-digits (1-3%) between 2016-2019 to mid-single-digits (4-6%) since 2019, a significant achievement for a mature company. This growth, coupled with fixed expenses, enhances profitability. The Return on Invested Capital (ROIC) has consistently improved from 9.1% in 2016 to a projected 15.2% in 2025, significantly exceeding the Weighted Average Cost of Capital. While the Cash Flow from Operations to Sales ratio shows volatility, it sits at a reasonable 21.1% in the most recent trailing twelve-month period. Valuation metrics indicate undervaluation; the stock's forward Price-to-Earnings (P/E) of 19.7 and forward Price-to-Operating Cash Flow (P/OCF) of 16.8 are near their lowest levels since January 2024. A discounted cash flow model yields an intrinsic value per share of $177.52, compared to the current market price of $138.90. Even after incorporating a 25% increase in the company's risk factor due to prevailing market conditions, the stock remains undervalued, suggesting a buying opportunity for 2026 and beyond.