Company valuation ยท Consumer Defensive

CLX: Hold + Reduce with a $65.39 price target

The Clorox Company. Capital earns more than at peers, but capital spending changes the cash picture.

Model target ยท USD
$65.39
For 2027-09-15
Model rating
Hold + Reduce
Reviewed 2026-09-16
Reference weekly close
$87.76
2026-09-11 ยท USD
Editorial illustration of The Clorox Company, Household & Personal Products.
Generated editorial illustration for Sharemaestro. It does not depict verified company premises or events.

Investment view

Capital earns more than at peers, but capital spending changes the cash picture.

Target and reference price

Target for 2027-09-15: $65.39 USD, -25.5% versus the $87.76 weekly close on 2026-09-11. Price return only; dividends, fees and tax excluded.

Price and earnings

Over 1 year (2025-09-12 to 2026-09-11), price changed -28.9% and trailing EPS changed -28.3%. A wider gap changes the earnings multiple; it does not establish fair value.

Supporting evidence

Return on invested capital: 23.1% for CLX, against 7.6% across 12 comparable peers.

The latest quarterly operating margin was 52.5%, +31.3 percentage points from a year earlier. The full report separates sales growth from margin changes.

Risks to the case

Operating cash covers 1.04 times profit, but cash after capital spending covers 0.69 times. Cash generation is stronger before the investment bill is paid.

Revenue changed -2.0% from the same quarter last year, through 2026-06-30. The previous quarterโ€™s year-on-year change was +0.1%.

What to monitor

Watch whether cash after capital spending closes the gap with profit. It currently covers 0.69 times profit over four quarters.

Compare the next results with the trailing margin of 24.7% and the annual-history median of 11.1%. A historical median is context, not a forecast.

Recheck the valuation gap alongside profitability and growth after new results. A discount alone does not establish value.

Valuation assumptions

Starting annual sales growth: -1.39%.

Long-term operating margin: 13.85%.

About this assessment

Review recorded on 2026-09-16. This is a dated summary of an automated company valuation. The full report includes the financial evidence, alternative scenarios and review history. Consult the latest report before using an earlier target. Automated model research, not personal investment advice. Targets depend on assumptions; returns are not guaranteed.

Evidence context