Procter & Gamble: There Are 3 Sides to This Story... PG, Trian and the Valuation
RBC believes PG's valuation already embeds roughly 5% rev growth (which is well above where the market is growing today and substantially above PG's growth). This compares to firm's current assumption of 3.5%, which would imply PG's global market share would stabilize to slightly grow. To justify relative alpha in PG from here, firm believes co would have to put up growth rates not seen since its Org 2005 restructuring (after a significant re-base and reinvestment into emerging market distribution). Even on EBIT, PG's current share price discounts 6-7% EBIT growth, which is above firm's current assumption of 5% (with peak margins of 24% vs 22% today); Sector Perform, $80 tgt.