“Davidson” is back with a breakdown of Proctor & Gamble (PG)
He writes:
I calculated the ROE/Multiple of BV for PG from 2000 till the lastest Morningstar report. Gillette was bought in 2006 and it was a transition year which did not have simple year end values.
For the time period the Current Market Rate of Return has been between 5-6%. Currently the value is 5.4% and for a return that makes a LgCap equity attractive the average is 150% x CMRR = 8.1%
With PG about $52shr this makes it buyable for the 1st time in the last 10yrs. I have looked at the margins and have been very impressed with the debt pay down from 80% Debt/Equity in 2005 to 32% today, this company has very a conservative financial position and appear to have seen our current environment coming. Their business has been steady even during the last slow down 2001-2003. Business is international with a manageable commodity input cost.
He provides the following information:.gif)
Disclosure (“none” means no position):None
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