Clorox: Reduced Complexity Paves The Way For Multiple Expansion

Clorox is attractively valued after underperformance, offering a 5% dividend yield and normalization post-cyber attack and ERP disruptions. The recent Purell (GOJO) acquisition is set to be accretive to EBITDA and EPS by FY27, supporting top-line growth above the company's long-term algorithm. CLX trades at 14.5x FY27 EPS, with double-digit earnings growth and room for multiple expansion relative to peers, setting up 20% upside potential.