Clorox (CLX) Valuation Check as Mixed Analyst Views Meet Operational Improvements and Innovation Hopes
Clorox (CLX) is back on investors radar after a sharp slide earlier this year, as fresh analyst commentary spotlights a mix of caution on consumer staples demand and optimism around its improving operations and innovation pipeline.
See our latest analysis for Clorox.
Those mixed messages help explain why Clorox’s 2025 share price return is still sharply negative despite improving fundamentals, with the recent slide suggesting sentiment has yet to fully catch up to the operational reset.
If the recent volatility in Clorox has you rethinking your watchlist, it could be a good time to explore fast growing stocks with high insider ownership as potential fresh ideas.
With shares down nearly 40% this year but trading at a steep discount to analyst targets and intrinsic estimates, is Clorox quietly undervalued, or already reflecting all the future growth markets are willing to price in?
Most Popular Narrative: 21.2% Undervalued
Based on the most followed narrative, Clorox’s intrinsic value sits well above its last close of $98.21, framing today’s sell off as potentially excessive.
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 a slow growing staples name can still merit a bullish long term valuation? The secret lies in steady margin lift, disciplined share count reductions, and a future earnings multiple that assumes Clorox behaves more like a premium compounder rather than a tired defensive stock.
Result: Fair Value of $124.59 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sluggish category growth and heightened price competition could compress margins and stall Clorox’s earnings recovery if ERP and innovation benefits arrive more slowly than expected.
Find out about the key risks to this Clorox narrative.
Build Your Own Clorox Narrative
If this perspective does not fully align with your own view, dive into the numbers yourself and build a personalized storyline in minutes: Do it your way.
A great starting point for your Clorox research is our analysis highlighting 5 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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