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Why is Procter & Gamble so Expensive?

Higher grocery bills can hurt investors, too.

Andrew Willis 22 July, 2022 | 4:28AM
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Andrew Willis: In the face of market downturns, investors often go defensive and seek out consumer staples for a source of stability in their portfolios. That might be why Proctor and Gamble (PG) is such an investor darling. But in this economic environment, marked by major inflation, it’s another story for companies attached to almost any supply chain.

While the demand for disinfectant and cleaning products made for memorable events a couple of years ago, sector director Erin Lash says that today the company still faces lingering supply chain issues, labour shortages and unrelenting commodity cost inflation.

Investors may be underestimating some nearer-term headwinds at Procter and Gamble as they value the company’s wide moat and commitment to innovation and quality that commands premium prices... But what matters most is the cost and what shareholders pay for it.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Procter & Gamble Co151.32 USD0.72Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @AndrewWillisCDN.

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