Is Clorox (CLX) Now Offering Value After Recent Share Price Rebound?

Simply Wall St

Thu, February 12, 2026 at 12:19 PM GMT+9 6 min read

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CLX

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Wondering if Clorox is fairly priced after a bumpy few years, or if the current share price is quietly offering value that the market has not fully appreciated yet?

The stock last closed at US$125.95, with returns of 6.9% over 7 days, 17.7% over 30 days and 24.9% year to date. Over longer periods, the 1-year, 3-year and 5-year returns stand at an 11.8% decline, 9.0% decline and 21.0% decline respectively.

Recent headlines around Clorox have focused on how the company is repositioning its core household brands and adjusting to changing consumer demand. This helps frame these mixed return figures and provides a clearer backdrop for thinking about whether the current price adequately reflects the company’s prospects and risks.

Clorox currently has a valuation score of 3/6, based on how many of six checks suggest the stock is undervalued. Next, we look at what different valuation methods say about that score and how they hint at an even richer way to understand value at the end of the article.

Find out why Clorox’s -11.8% return over the last year is lagging behind its peers.

Approach 1: Clorox Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and then discounting those amounts back into today’s dollars.

For Clorox, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The company’s latest twelve month free cash flow is about $777.1 million. Analysts and extrapolated estimates point to free cash flow of $1,137 million in 2030, with intermediate annual projections between 2026 and 2035 ranging from about $664.2 million to $1,352.3 million, all in $ terms.

When those projected cash flows are discounted back, the DCF model arrives at an estimated intrinsic value of US$227.89 per share. Compared with the recent share price of US$125.95, this implies the stock trades at a 44.7% discount to that intrinsic value. This indicates potential upside if those cash flow projections prove realistic.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Clorox is undervalued by 44.7%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

CLX Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Clorox.

Approach 2: Clorox Price vs Earnings

For profitable companies like Clorox, the P/E ratio is a practical way to think about what you are paying for each dollar of current earnings. It ties the share price directly to the business’s ability to generate profit today.

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What counts as a “normal” P/E depends on expectations and risk. Higher expected earnings growth or perceived resilience often leads investors to accept a higher P/E, while more uncertainty or weaker growth expectations usually lines up with a lower P/E.

Clorox currently trades on a P/E of 20.17x. That sits above the Household Products industry average of 17.63x, but below the peer group average of 26.67x. Simply Wall St’s Fair Ratio for Clorox is 18.26x, which is its view of what a reasonable P/E could be given factors such as earnings growth, industry, profit margin, market cap and company specific risks.

This Fair Ratio can be more useful than simple peer or industry comparisons, because it adjusts for how Clorox’s fundamentals and risk profile differ from other companies. Compared with the current P/E of 20.17x, the Fair Ratio of 18.26x points to Clorox trading somewhat above that internally assessed range.

Result: OVERVALUED

NYSE:CLX P/E Ratio as at Feb 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.

Upgrade Your Decision Making: Choose your Clorox Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives, where you tell a clear story about Clorox, link that story to your own revenue, earnings and margin expectations, see the fair value that drops out of those assumptions, then compare it with the current price. Because Narratives update as new news or earnings arrive, you can quickly see how a more cautious view that lines up with a US$94 fair value or a more optimistic view closer to US$154.61 leads to very different buy or sell decisions even though both are using the same company data.

For Clorox however we will make it really easy for you with previews of two leading Clorox Narratives:

🐂 Clorox Bull Case

Fair value: US$154.61

Implied discount to fair value vs last close: 18.6%

Revenue growth assumption: 2.15%

Sees ERP and broader digital upgrades as a powerful driver of margin improvement and earnings, with cost savings and better data gradually flowing through the income statement.

Assumes Clorox can lean on brand strength, product development and sustainability efforts to support revenue and market share in household and health related categories.

Bases a higher fair value on analysts at the more optimistic end of the range, who are comfortable with a richer future P/E if margins and earnings hold up as expected.

🐻 Clorox Bear Case

Fair value: US$94.00

Implied premium to fair value vs last close: 34.0%

Revenue growth assumption: 0.70%

Focuses on slower recovery in certain distribution channels and ongoing pressure from private label and online focused competitors.

Highlights regulatory and environmental compliance costs, plus input cost inflation, as potential constraints on margins even if volumes steady.

Applies a lower fair value and reduced future P/E multiple, reflecting analysts who see the current share price as baking in more earnings power than they are willing to assume.

Seeing both sides laid out like this makes it easier to decide which narrative feels closer to your own expectations for Clorox’s brands, margins and long term demand. If you want to move from these previews to a full story linked to explicit forecasts and fair values, you can build and compare your own bullish or bearish case using Narratives on Simply Wall St. Curious how numbers become stories that shape markets? Explore Community Narratives

Do you think there’s more to the story for Clorox? Head over to our Community to see what others are saying!

NYSE:CLX 1-Year Stock Price Chart

_ 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._

Companies discussed in this article include CLX.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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