Mentions

The host rates Procter & Gamble as a Buy based on a significant valuation gap — the stock trades at $144 versus his discounted cash flow intrinsic value of $198. He provides a detailed fundamental analysis contrasting current cost-push inflation (driven by tariffs and the war in Iran causing oil prices to surge) with the demand-pull inflation of 2022–2023, arguing that PG's pricing power is materially weaker today: the company raised prices only 1% last quarter while volume fell 1%. He notes operating cash flow of $5B on $22.2B in net sales (sub-25% ratio) and flags that upcoming Q earnings on April 24th will be the first to include war-related impacts, which management has not yet addressed. Despite the buy rating, he explicitly recommends waiting until after earnings to purchase, citing more near-term downside than upside as management is likely to revise guidance lower once war and energy cost impacts are disclosed.