Stock Analysis on Net

Estée Lauder Cos. Inc. (NYSE:EL)

This company has been moved to the archive! The financial data has not been updated since August 18, 2023.

Common Stock Valuation Ratios (Price Multiples) 

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Estée Lauder Cos. Inc., current price multiples

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Estée Lauder Cos. Inc. Procter & Gamble Co. Consumer Staples
Selected Financial Data
Current share price (P) $156.69
No. shares of common stock outstanding 357,690,815
Growth rate (g) 16.03%
 
Earnings per share (EPS) $2.81
Next year expected EPS $3.26
Operating profit per share $4.22
Sales per share $44.48
Book value per share (BVPS) $15.61
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 55.71 27.57 32.39
Price to next year expected earnings 48.02 24.68 29.74
Price-earnings-growth (PEG) 3.48 2.35 3.63
Price to operating profit (P/OP) 37.14 21.70 23.67
Price to sales (P/S) 3.52 4.79 1.87
Price to book value (P/BV) 10.04 8.00 12.17

Based on: 10-K (reporting date: 2023-06-30).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Estée Lauder Cos. Inc., historical price multiples

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Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Price to earnings (P/E) 55.71 39.64 42.90 117.59 39.84 44.93
Price to operating profit (P/OP) 37.14 29.88 47.03 132.73 30.75 24.26
Price to sales (P/S) 3.52 5.34 7.59 5.63 4.79 3.64
Price to book value (P/BV) 10.04 16.95 20.33 20.44 16.22 10.62

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Estée Lauder Cos. Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Estée Lauder Cos. Inc. P/OP ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Estée Lauder Cos. Inc. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Estée Lauder Cos. Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

Estée Lauder Cos. Inc., historical P/E calculation, comparison to benchmarks

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Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 357,690,815 356,903,600 361,287,242 360,804,641 360,756,333 367,194,210
Selected Financial Data (US$)
Net earnings attributable to The Estée Lauder Companies Inc. (in millions) 1,006 2,390 2,870 684 1,785 1,108
Earnings per share (EPS)2 2.81 6.70 7.94 1.90 4.95 3.02
Share price1, 3 156.69 265.43 340.82 222.93 197.15 135.59
Valuation Ratio
P/E ratio4 55.71 39.64 42.90 117.59 39.84 44.93
Benchmarks
P/E Ratio, Competitors5
Procter & Gamble Co. 25.47 23.91 24.46 25.85 78.69
P/E Ratio, Industry
Consumer Staples 24.77 24.15 26.41 23.72 35.36

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net earnings attributable to The Estée Lauder Companies Inc. ÷ No. shares of common stock outstanding
= 1,006,000,000 ÷ 357,690,815 = 2.81

3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 156.69 ÷ 2.81 = 55.71

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Estée Lauder Cos. Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

Estée Lauder Cos. Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 357,690,815 356,903,600 361,287,242 360,804,641 360,756,333 367,194,210
Selected Financial Data (US$)
Operating income (in millions) 1,509 3,170 2,618 606 2,313 2,052
Operating profit per share2 4.22 8.88 7.25 1.68 6.41 5.59
Share price1, 3 156.69 265.43 340.82 222.93 197.15 135.59
Valuation Ratio
P/OP ratio4 37.14 29.88 47.03 132.73 30.75 24.26
Benchmarks
P/OP Ratio, Competitors5
Procter & Gamble Co. 20.19 19.41 19.08 21.01 52.12
P/OP Ratio, Industry
Consumer Staples 18.11 16.77 17.52 16.82 18.03

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,509,000,000 ÷ 357,690,815 = 4.22

3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 156.69 ÷ 4.22 = 37.14

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Estée Lauder Cos. Inc. P/OP ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Sales (P/S)

Estée Lauder Cos. Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 357,690,815 356,903,600 361,287,242 360,804,641 360,756,333 367,194,210
Selected Financial Data (US$)
Net sales (in millions) 15,910 17,737 16,215 14,294 14,863 13,683
Sales per share2 44.48 49.70 44.88 39.62 41.20 37.26
Share price1, 3 156.69 265.43 340.82 222.93 197.15 135.59
Valuation Ratio
P/S ratio4 3.52 5.34 7.59 5.63 4.79 3.64
Benchmarks
P/S Ratio, Competitors5
Procter & Gamble Co. 4.46 4.31 4.51 4.65 4.22
P/S Ratio, Industry
Consumer Staples 1.43 1.55 1.61 1.49 1.46

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 15,910,000,000 ÷ 357,690,815 = 44.48

3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 156.69 ÷ 44.48 = 3.52

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Estée Lauder Cos. Inc. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

Estée Lauder Cos. Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 357,690,815 356,903,600 361,287,242 360,804,641 360,756,333 367,194,210
Selected Financial Data (US$)
Stockholders’ equity, The Estée Lauder Companies Inc. (in millions) 5,585 5,590 6,057 3,935 4,386 4,688
Book value per share (BVPS)2 15.61 15.66 16.77 10.91 12.16 12.77
Share price1, 3 156.69 265.43 340.82 222.93 197.15 135.59
Valuation Ratio
P/BV ratio4 10.04 16.95 20.33 20.44 16.22 10.62
Benchmarks
P/BV Ratio, Competitors5
Procter & Gamble Co. 7.83 7.42 7.40 7.09 6.06
P/BV Ratio, Industry
Consumer Staples 9.31 9.35 9.37 8.39 7.93

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Stockholders’ equity, The Estée Lauder Companies Inc. ÷ No. shares of common stock outstanding
= 5,585,000,000 ÷ 357,690,815 = 15.61

3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 156.69 ÷ 15.61 = 10.04

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Estée Lauder Cos. Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.