Oral Care Leads Colgate-Palmolive to $98 Fair Value

Colgate-Palmolive which leads the oral care market, seems focused on market share expansion, even if it means lower prices and contracted margins. The company’s oral care market share grew from 25{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in 2010 to 26{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in 2011, as it toned down its plans of raising prices in a high cost environment. Colgate also expects much of its future growth to be volume-driven, particularly in the emerging markets, and any attempts to absorb cost pressures through higher pricing may be constrained by price competition, leading to a downward pressure on its margins. Colgate competes with other leading personal care companies such as Procter & Gamble, Unilever and Kimberly-Clark. Its core oral care business generates half of the company’s stock value. Forbes – Read more…