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Clorox (CLX) Looks 6% Overvalued Following Earnings And 2027 Guidance

Simply Wall St · 1d ago

How the latest Clorox earnings and guidance set the context

Clorox (CLX) just reported full year 2026 results with lower sales and earnings than a year earlier, while also issuing 2027 guidance that includes the impact of its recently acquired GOJO business.

The company paired those updates with a small quarterly dividend increase to $1.25 per share and outlined plans to manage higher inflation through pricing actions, supply chain changes and investment in its core product portfolio.

See our latest analysis for Clorox.

Clorox shares have gained 12.11% on a 1 month share price return basis and 17.66% over 3 months, yet the 1 year total shareholder return is still down 6.81%. This suggests recent momentum has not fully reversed longer term weakness as investors weigh earnings pressure, the GOJO integration and leadership change.

If you are weighing Clorox against other ideas in your portfolio, this could be a good moment to widen your search and check out 18 top founder-led companies

Bulls see Clorox’s recent share price rebound, GOJO contribution and dividend lift as support for a higher valuation. Bears point to softer earnings, inflation and leadership change. Which side do the current valuation signals support?

Most Popular Narrative: 6% Overvalued

The most followed Clorox narrative points to a fair value of $101.71, which sits below the last close of $108.25 and presents the current rebound as slightly ahead of that model.

The full-scale implementation of a modern ERP system is expected to drive long-term operational efficiencies, improving supply chain visibility, speeding innovation cycles, and reducing structural costs, which should support margin expansion and sustained earnings growth once short-term transition noise normalizes.

Read the complete narrative.

Want to see why this narrative still lands below where Clorox trades today? The story leans heavily on faster revenue, fatter margins and a reset profit multiple. Curious how those pieces fit together and what kind of earnings path and terminal valuation are incorporated into that $101.71 figure?

Result: Fair Value of $101.71 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Clorox still faces risks from sluggish category growth and intense price competition, which could pressure margins and challenge the earnings path behind this fair value story.

Find out about the key risks to this Clorox narrative.

Another view on Clorox’s valuation

The analyst narrative pegs Clorox at about 6% overvalued based on a $101.71 fair value, yet our DCF model points in a very different direction. On those cash flow assumptions, Clorox screens as significantly undervalued relative to its current $108.25 share price. Which lens do you think fits your own expectations for the business?

Look into how the SWS DCF model arrives at its fair value.

CLX Discounted Cash Flow as at Aug 2026
CLX Discounted Cash Flow as at Aug 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Clorox for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals around Clorox can feel uncomfortable, so this is a good time to move quickly, test the assumptions yourself, and weigh up the 2 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Clorox?

If you find Clorox interesting, do not stop there. Broaden your watchlist now and you may spot opportunities that others only notice after the move is over.

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.