Price to Earnings (P/E)
since 2005
Calculation
Estée Lauder Cos. Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings attributable to The Estée Lauder Companies Inc.1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 18, 2023 | 55.71 | = | 156.69 | ÷ | 2.81 | 2.81 | = | 1,006 | ÷ | 357,690,815 | |
| Aug 24, 2022 | 39.64 | = | 265.43 | ÷ | 6.70 | 6.70 | = | 2,390 | ÷ | 356,903,600 | |
| Aug 27, 2021 | 42.90 | = | 340.82 | ÷ | 7.94 | 7.94 | = | 2,870 | ÷ | 361,287,242 | |
| Aug 28, 2020 | 117.59 | = | 222.93 | ÷ | 1.90 | 1.90 | = | 684 | ÷ | 360,804,641 | |
| Aug 23, 2019 | 39.84 | = | 197.15 | ÷ | 4.95 | 4.95 | = | 1,785 | ÷ | 360,756,333 | |
| Aug 24, 2018 | 44.93 | = | 135.59 | ÷ | 3.02 | 3.02 | = | 1,108 | ÷ | 367,194,210 | |
| Aug 25, 2017 | 31.37 | = | 106.50 | ÷ | 3.39 | 3.39 | = | 1,249 | ÷ | 367,956,150 | |
| Aug 24, 2016 | 29.69 | = | 90.50 | ÷ | 3.05 | 3.05 | = | 1,115 | ÷ | 365,713,211 | |
| Aug 20, 2015 | 28.14 | = | 82.18 | ÷ | 2.92 | 2.92 | = | 1,089 | ÷ | 372,906,890 | |
| Aug 20, 2014 | 24.25 | = | 76.58 | ÷ | 3.16 | 3.16 | = | 1,204 | ÷ | 381,308,350 | |
| Aug 23, 2013 | 25.89 | = | 68.15 | ÷ | 2.63 | 2.63 | = | 1,020 | ÷ | 387,408,153 | |
| Aug 17, 2012 | 27.84 | = | 61.61 | ÷ | 2.21 | 2.21 | = | 857 | ÷ | 387,201,230 | |
| Aug 22, 2011 | 24.62 | = | 44.24 | ÷ | 1.80 | 1.80 | = | 701 | ÷ | 389,930,724 | |
| Aug 20, 2010 | 23.62 | = | 28.70 | ÷ | 1.21 | 1.21 | = | 478 | ÷ | 393,666,008 | |
| Aug 19, 2009 | 31.52 | = | 17.50 | ÷ | 0.56 | 0.56 | = | 218 | ÷ | 393,397,268 | |
| Aug 21, 2008 | 20.56 | = | 25.03 | ÷ | 1.22 | 1.22 | = | 474 | ÷ | 389,219,852 | |
| Aug 28, 2007 | 17.85 | = | 20.64 | ÷ | 1.16 | 1.16 | = | 449 | ÷ | 388,544,612 | |
| Aug 25, 2006 | 30.30 | = | 17.47 | ÷ | 0.58 | 0.58 | = | 244 | ÷ | 423,560,108 | |
| Sep 2, 2005 | 22.06 | = | 20.27 | ÷ | 0.92 | 0.92 | = | 406 | ÷ | 441,976,816 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.
- Share Price Trend
- The share price exhibited notable fluctuations over the observed period. Starting at $20.27 in 2005, it experienced moderate declines and recoveries, reaching a low point around 2009 at $17.50. From 2010 onwards, a strong upward trend is apparent, peaking significantly at $340.82 in 2021. However, this peak was followed by a sharp decline to $156.69 by 2023, suggesting recent volatility and a substantial reduction in market valuation.
- Earnings Per Share (EPS) Analysis
- EPS demonstrated considerable variability, reflecting underlying profitability changes. Initial EPS values showed moderate growth from $0.92 in 2005 to $2.63 by 2013, indicating improving earnings capacity. This growth was punctuated by volatility, notably a sharp rise to $7.94 in 2021, which appears exceptional. Following this peak, EPS declined to $2.81 in 2023, aligning with the share price downturn and indicating potential earnings pressure or one-time effects that influenced reported earnings.
- Price-to-Earnings (P/E) Ratio Behavior
- The P/E ratio fluctuated substantially, reflecting varying investor sentiment and market expectations relative to earnings performance. Early period values ranged mostly between 17 and 31, showing balanced valuation levels. The ratio surged dramatically in 2020 and 2021, reaching as high as 117.59, signaling either elevated market optimism or earnings volatility. Subsequent P/E contraction to values around 40 to 55 suggests a correction or reassessment of growth prospects by the market in the most recent years.
- Overall Financial Insights
- The data underscores a company that has experienced periods of both growth and volatility. The substantial surge in share price and EPS around 2020-2021 indicates a phase of strong market performance and profitability, but the sharp subsequent declines point to instability or external challenges impacting financial results and market confidence. The elevated P/E ratios coinciding with these fluctuations highlight heightened market expectations, which were later tempered by more recent earnings and price decreases. This pattern suggests the importance of cautious interpretation of valuation metrics amid earnings variability.
Comparison to Competitors
Estée Lauder Cos. Inc., P/E, long-term trends, comparison to competitors
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | |
|---|---|---|
| Aug 18, 2023 | 55.71 | 25.47 |
| Aug 24, 2022 | 39.64 | 23.91 |
| Aug 27, 2021 | 42.90 | 24.46 |
| Aug 28, 2020 | 117.59 | 25.85 |
| Aug 23, 2019 | 39.84 | 78.69 |
| Aug 24, 2018 | 44.93 | 21.68 |
| Aug 25, 2017 | 31.37 | 15.46 |
| Aug 24, 2016 | 29.69 | 22.38 |
| Aug 20, 2015 | 28.14 | 30.21 |
| Aug 20, 2014 | 24.25 | 19.24 |
| Aug 23, 2013 | 25.89 | 20.33 |
| Aug 17, 2012 | 27.84 | 17.50 |
| Aug 22, 2011 | 24.62 | 13.90 |
| Aug 20, 2010 | 23.62 | 13.57 |
| Aug 19, 2009 | 31.52 | 11.54 |
| Aug 21, 2008 | 20.56 | 18.11 |
| Aug 28, 2007 | 17.85 | 19.84 |
| Aug 25, 2006 | 30.30 | 22.76 |
| Sep 2, 2005 | 22.06 | 19.23 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Consumer Staples)
Estée Lauder Cos. Inc., P/E, long-term trends, comparison to industry (consumer staples)
| Estée Lauder Cos. Inc. | Consumer Staples | |
|---|---|---|
| Aug 18, 2023 | 55.71 | 26.62 |
| Aug 24, 2022 | 39.64 | 25.35 |
| Aug 27, 2021 | 42.90 | 26.07 |
| Aug 28, 2020 | 117.59 | 24.12 |
| Aug 23, 2019 | 39.84 | 31.92 |
| Aug 24, 2018 | 44.93 | 20.62 |
| Aug 25, 2017 | 31.37 | 22.78 |
| Aug 24, 2016 | 29.69 | 21.50 |
| Aug 20, 2015 | 28.14 | 21.97 |
| Aug 20, 2014 | 24.25 | 19.71 |
| Aug 23, 2013 | 25.89 | 17.00 |
| Aug 17, 2012 | 27.84 | 16.60 |
| Aug 22, 2011 | 24.62 | 14.81 |
| Aug 20, 2010 | 23.62 | 14.32 |
| Aug 19, 2009 | 31.52 | 14.63 |
| Aug 21, 2008 | 20.56 | 15.52 |
| Aug 28, 2007 | 17.85 | 19.68 |
| Aug 25, 2006 | 30.30 | 19.79 |
| Sep 2, 2005 | 22.06 | 20.04 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).