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Procter & Gamble shares unattractive at 21.15x FY27 EPS with low growth and dividend yield below Treasuries

Company Fundamentals
04 Sep 2026
Seeking Alpha
View Source
Bearish
Procter & Gamble shares unattractive at 21.15x FY27 EPS with low growth and dividend yield below Treasuries

Procter & Gamble remains a well-managed company but its stock is currently overvalued at 21.15 times its fiscal year 2027 earnings per share, with expected growth of only 1.3%. The company's dividend yield of 2.95% is less attractive compared to risk-free Treasury yields, especially given slowing dividend growth and limited prospects for capital gains. Fiscal 2027 guidance anticipates 1-3% organic sales growth and 1.5% core EPS growth, with significant cost pressures and a first-quarter EPS decline of over 5%. The analyst maintains a neutral stance, preferring a dividend yield above 4% and a price-to-earnings ratio near 15 before considering investment, noting that index funds and Treasuries currently offer better alternatives.

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