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.
The valuation of the company experienced significant volatility over the 18-year period analyzed, characterized by a long phase of relative stability followed by a period of extreme fluctuation in the price-to-earnings (P/E) ratio. While share prices and earnings per share (EPS) generally trended upward until 2021, the correlation between these two metrics shifted markedly in the later years of the sequence.
- Historical Valuation Stability (2005–2017)
- For over a decade, the P/E ratio remained within a relatively predictable range, typically fluctuating between 17.85 and 31.37. During this interval, the share price grew steadily from 20.27 to 106.50, and EPS rose proportionally from 0.92 to 3.39. This suggests a consistent market valuation of the company's earnings power during this growth phase.
- Valuation Expansion and the 2020 Anomaly
- A notable upward shift in valuation began in 2018, with the P/E ratio climbing into the 40s. This trend culminated in a dramatic spike to 117.59 in 2020. This peak was primarily driven by a severe contraction in EPS to 1.90, while the share price simultaneously rose to 222.93, resulting in a temporary decoupling of the stock price from current earnings.
- Recent Earnings Compression and Valuation Shifts (2021–2023)
- Following the 2020 peak, the P/E ratio normalized to 42.90 in 2021, supported by a peak EPS of 7.94 and a record share price of 340.82. However, a subsequent trend of valuation expansion emerged by 2023, with the P/E ratio rising to 55.71. This most recent increase is attributable to a sharp decline in EPS to 2.81, which outpaced the decline in the share price to 156.69.
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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).