Stock Analysis on Net
Stock Analysis on Net
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Estée Lauder Cos. Inc. (NYSE:EL)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Estée Lauder Cos. Inc., EBITDA calculation

US$ in millions

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12 months ended: Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Net earnings attributable to The Estée Lauder Companies Inc. 684  1,785  1,108  1,249  1,115  1,089 
Add: Net income attributable to noncontrolling interest 12  9  9  7  6  5 
Add: Income tax expense 350  513  863  361  434  467 
Earnings before tax (EBT) 1,046  2,307  1,980  1,617  1,555  1,561 
Add: Interest expense 161  133  128  103  71  60 
Earnings before interest and tax (EBIT) 1,207  2,440  2,108  1,720  1,626  1,621 
Add: Depreciation and amortization 611  557  531  464  415  409 
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,818  2,997  2,639  2,184  2,041  2,030 

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Estée Lauder Cos. Inc.’s EBITDA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

Estée Lauder Cos. Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 114,427 
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,818 
Valuation Ratio
EV/EBITDA 62.94
Benchmarks
EV/EBITDA, Competitors1
Colgate-Palmolive Co. 17.29
Kimberly-Clark Corp. 13.45
Nike Inc. 51.26
EV/EBITDA, Sector
Personal Goods 31.70
EV/EBITDA, Industry
Consumer Goods 22.82

Based on: 10-K (filing date: 2020-08-28).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Estée Lauder Cos. Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 81,575  71,573  50,639  41,036  33,971  30,769 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,818  2,997  2,639  2,184  2,041  2,030 
Valuation Ratio
EV/EBITDA3 44.87 23.88 19.19 18.79 16.65 15.16
Benchmarks
EV/EBITDA, Competitors4
Colgate-Palmolive Co. 16.91 18.10 15.21 16.45 16.44 —
Kimberly-Clark Corp. 12.86 14.43 15.09 11.18 12.16 —
Nike Inc. 37.14 23.83 23.37 16.66 17.34 18.99
EV/EBITDA, Sector
Personal Goods 25.09 20.22 18.71 15.49 15.65 —
EV/EBITDA, Industry
Consumer Goods 22.39 18.89 13.55 14.11 12.51 —

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 81,575 ÷ 1,818 = 44.87

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Estée Lauder Cos. Inc.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.