Colgate-Palmolive Company

“Colgate-Palmolive is a textbook durable-moat compounder — ~40% global oral care share, 20%+ ROIC, >100% FCF conversion, and Hill's as a credible growth engine — but at ~22x forward earnings and ~20x FCF, the current price embeds precisely the 3–4% perpetual growth the business is likely to deliver, yielding only 7–8% annualised total returns with no margin of safety. The franchise is low-risk and worth owning, but full valuation means capital is better deployed elsewhere until a 15–20% pullback resets the return math to genuinely attractive levels.”