Price to Sales (P/S)
since 2005
Calculation
Estée Lauder Cos. Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 18, 2023 | 3.52 | = | 156.69 | ÷ | 44.48 | 44.48 | = | 15,910 | ÷ | 357,690,815 | |
| Aug 24, 2022 | 5.34 | = | 265.43 | ÷ | 49.70 | 49.70 | = | 17,737 | ÷ | 356,903,600 | |
| Aug 27, 2021 | 7.59 | = | 340.82 | ÷ | 44.88 | 44.88 | = | 16,215 | ÷ | 361,287,242 | |
| Aug 28, 2020 | 5.63 | = | 222.93 | ÷ | 39.62 | 39.62 | = | 14,294 | ÷ | 360,804,641 | |
| Aug 23, 2019 | 4.79 | = | 197.15 | ÷ | 41.20 | 41.20 | = | 14,863 | ÷ | 360,756,333 | |
| Aug 24, 2018 | 3.64 | = | 135.59 | ÷ | 37.26 | 37.26 | = | 13,683 | ÷ | 367,194,210 | |
| Aug 25, 2017 | 3.31 | = | 106.50 | ÷ | 32.13 | 32.13 | = | 11,824 | ÷ | 367,956,150 | |
| Aug 24, 2016 | 2.94 | = | 90.50 | ÷ | 30.80 | 30.80 | = | 11,262 | ÷ | 365,713,211 | |
| Aug 20, 2015 | 2.84 | = | 82.18 | ÷ | 28.91 | 28.91 | = | 10,780 | ÷ | 372,906,890 | |
| Aug 20, 2014 | 2.66 | = | 76.58 | ÷ | 28.77 | 28.77 | = | 10,969 | ÷ | 381,308,350 | |
| Aug 23, 2013 | 2.59 | = | 68.15 | ÷ | 26.28 | 26.28 | = | 10,182 | ÷ | 387,408,153 | |
| Aug 17, 2012 | 2.46 | = | 61.61 | ÷ | 25.09 | 25.09 | = | 9,714 | ÷ | 387,201,230 | |
| Aug 22, 2011 | 1.96 | = | 44.24 | ÷ | 22.59 | 22.59 | = | 8,810 | ÷ | 389,930,724 | |
| Aug 20, 2010 | 1.45 | = | 28.70 | ÷ | 19.80 | 19.80 | = | 7,796 | ÷ | 393,666,008 | |
| Aug 19, 2009 | 0.94 | = | 17.50 | ÷ | 18.62 | 18.62 | = | 7,324 | ÷ | 393,397,268 | |
| Aug 21, 2008 | 1.23 | = | 25.03 | ÷ | 20.32 | 20.32 | = | 7,911 | ÷ | 389,219,852 | |
| Aug 28, 2007 | 1.14 | = | 20.64 | ÷ | 18.11 | 18.11 | = | 7,038 | ÷ | 388,544,612 | |
| Aug 25, 2006 | 1.14 | = | 17.47 | ÷ | 15.26 | 15.26 | = | 6,464 | ÷ | 423,560,108 | |
| Sep 2, 2005 | 1.41 | = | 20.27 | ÷ | 14.34 | 14.34 | = | 6,336 | ÷ | 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 Price-to-Sales (P/S) ratio demonstrates a long-term trajectory characterized by initial stability, a prolonged period of expansion, a speculative peak, and a subsequent correction. Between 2005 and 2023, the valuation multiple evolved from a conservative baseline to a high-growth premium before reverting toward historical averages.
- Initial Valuation Baseline (2005–2009)
- During this period, the P/S ratio remained relatively low and stable, fluctuating between 0.94 and 1.41. The ratio reached its lowest point of 0.94 in 2009, indicating that the market valuation of the company was nearly equivalent to its annual sales per share.
- Sustained Multiple Expansion (2010–2019)
- A consistent upward trend in the P/S ratio is observed starting in 2010. The ratio climbed steadily from 1.45 in 2010 to 4.79 by 2019. This growth suggests an increasing market premium attributed to the company's revenue streams, as the share price grew at a significantly faster rate than the sales per share.
- Peak Valuation and Extreme Volatility (2020–2021)
- The P/S ratio experienced an aggressive surge, peaking at 7.59 in 2021. This represents the highest valuation multiple in the analyzed timeframe, reflecting a period where investor sentiment drove the share price to 340.82, far outpacing the growth in sales per share, which reached 44.88 in 2020.
- Valuation Correction (2022–2023)
- A sharp contraction in the P/S ratio occurred between 2022 and 2023, falling from 7.59 to 3.52. This decline was driven by a substantial reduction in share price, coupled with a decrease in sales per share from a peak of 49.70 in 2022 to 44.48 in 2023, signaling a significant market correction and a return to more moderate valuation levels.
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Comparison to Competitors
Estée Lauder Cos. Inc., P/S, long-term trends, comparison to competitors
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | |
|---|---|---|
| Aug 18, 2023 | 3.52 | 4.46 |
| Aug 24, 2022 | 5.34 | 4.31 |
| Aug 27, 2021 | 7.59 | 4.51 |
| Aug 28, 2020 | 5.63 | 4.65 |
| Aug 23, 2019 | 4.79 | 4.22 |
| Aug 24, 2018 | 3.64 | 3.08 |
| Aug 25, 2017 | 3.31 | 3.58 |
| Aug 24, 2016 | 2.94 | 3.51 |
| Aug 20, 2015 | 2.84 | 2.68 |
| Aug 20, 2014 | 2.66 | 2.64 |
| Aug 23, 2013 | 2.59 | 2.67 |
| Aug 17, 2012 | 2.46 | 2.20 |
| Aug 22, 2011 | 1.96 | 1.95 |
| Aug 20, 2010 | 1.45 | 2.15 |
| Aug 19, 2009 | 0.94 | 1.93 |
| Aug 21, 2008 | 1.23 | 2.58 |
| Aug 28, 2007 | 1.14 | 2.64 |
| Aug 25, 2006 | 1.14 | 2.85 |
| Sep 2, 2005 | 1.41 | 2.41 |
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/S, long-term trends, comparison to industry (consumer staples)
| Estée Lauder Cos. Inc. | Consumer Staples | |
|---|---|---|
| Aug 18, 2023 | 3.52 | 1.45 |
| Aug 24, 2022 | 5.34 | 1.54 |
| Aug 27, 2021 | 7.59 | 1.61 |
| Aug 28, 2020 | 5.63 | 1.49 |
| Aug 23, 2019 | 4.79 | 1.47 |
| Aug 24, 2018 | 3.64 | 1.24 |
| Aug 25, 2017 | 3.31 | 1.25 |
| Aug 24, 2016 | 2.94 | 1.26 |
| Aug 20, 2015 | 2.84 | 1.23 |
| Aug 20, 2014 | 2.66 | 1.18 |
| Aug 23, 2013 | 2.59 | 1.14 |
| Aug 17, 2012 | 2.46 | 1.10 |
| Aug 22, 2011 | 1.96 | 1.03 |
| Aug 20, 2010 | 1.45 | 1.08 |
| Aug 19, 2009 | 0.94 | 1.01 |
| Aug 21, 2008 | 1.23 | 1.04 |
| Aug 28, 2007 | 1.14 | 1.20 |
| Aug 25, 2006 | 1.14 | 1.25 |
| Sep 2, 2005 | 1.41 | 1.26 |
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).