It can be difficult to find a good deal in the current environment because almost any company that is actually worth investing in is trading at multiples that are simply too high for any conservative investor to actually consider. We have seen investors of all types who have fled to the most defensive stocks available which have pushed the dividend yield of these stocks down as the share price skyrockets.
While many companies are struggling, some of the well-known companies are trading at multiples well-above their historical norms. One example of a company that has benefitted from the pandemic is Clorox (CLX).
Clorox was trading at a 10-year P/E ratio high of 26.35x near the end of November 2018 and blew that out-of-the-water with a P/E ratio of 32.01x at the end of July 2020. The current P/E ratio is 28.11x, which is still a very rich valuation given its