Clorox (CLX): Assessing Valuation After a 35% Share Price Slide and Modest Earnings Growth
Clorox (CLX) has quietly slid over the past year, with the stock down roughly 35% year to date and about the same over the past year, raising fresh questions about what investors are pricing in.
See our latest analysis for Clorox.
The latest slide has come even as Clorox has posted modest revenue and earnings growth, suggesting the market is still recalibrating expectations after last year’s cyberattack and subsequent supply chain disruptions. In simple terms, the 1 year share price return and multi year total shareholder returns point to fading momentum rather than a quick rebound.
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With shares down sharply but fundamentals inching forward, analysts still see upside and valuation models suggest a deeper discount, leaving investors to ask: Is Clorox a contrarian idea, or is future growth already fully reflected in the current share price?
Most Popular Narrative Narrative: 15.8% Undervalued
Against Clorox’s last close of $104.90, the most followed narrative’s fair value of about $124.59 points to meaningful upside if its assumptions play out.
The full-scale implementation of a modern ERP system is expected to drive long-term operational efficiencies, improving supply chain visibility, speeding innovation cycles, and reducing structural costs, which should support margin expansion and sustained earnings growth once short-term transition noise normalizes.
Curious how modest headline growth can still justify a richer future earnings multiple and higher fair value, even in a slow staple category? Unpack the narrative’s math and see which margin and valuation levers do the heavy lifting.
Result: Fair Value of $124.59 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on Clorox stabilizing demand and navigating intense price competition, where persistent discounting and private label pressure could quickly erode margins.
Find out about the key risks to this Clorox narrative.
Build Your Own Clorox Narrative
If you are not fully aligned with this view, or simply prefer to dig into the numbers yourself, you can build a fresh storyline in just a few minutes, starting with Do it your way.
A great starting point for your Clorox research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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