Estée Lauder Cos. Inc., FCFF calculation

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Net earnings attributable to The Estée Lauder Companies Inc.	1,006)	2,390)	2,870)	684)	1,785)	1,108)
Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest	4)	18)	5)	12)	9)	9)
Net noncash charges	1,077)	1,186)	202)	1,595)	725)	881)
Changes in operating assets and liabilities	(356)	(554)	554)	(11)	(2)	575)
Net cash flows provided by operating activities	1,731)	3,040)	3,631)	2,280)	2,517)	2,573)
Cash paid during the year for interest, net of tax¹	170)	129)	143)	102)	102)	101)
Capital expenditures	(1,003)	(1,040)	(637)	(623)	(744)	(629)
Purchases of other intangible assets	(2,286)	—)	—)	—)	—)	—)
Proceeds from sale of property, plant and equipment	—)	—)	—)	—)	2)	—)
Free cash flow to the firm (FCFF)	(1,388)	2,129)	3,137)	1,759)	1,877)	2,045)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Estée Lauder Cos. Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Estée Lauder Cos. Inc. FCFF decreased from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Effective Income Tax Rate (EITR)
EITR¹	27.70%	20.70%	13.70%	33.50%	22.00%	20.80%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	235)	163)	166)	153)	131)	128)
Less: Cash paid during the year for interest, tax²	65)	34)	23)	51)	29)	27)
Cash paid during the year for interest, net of tax	170)	129)	143)	102)	102)	101)

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 See details »

² 2023 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 235 × 27.70% = 65

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	60,132)
Free cash flow to the firm (FCFF)	(1,388)
Valuation Ratio
EV/FCFF	—
Benchmarks
EV/FCFF, Competitors¹
Procter & Gamble Co.	28.62
EV/FCFF, Industry
Consumer Staples	31.60

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

¹ Click competitor name to see calculations.

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

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

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	60,132)	96,188)	123,779)	81,575)	71,573)	50,639)
Free cash flow to the firm (FCFF)²	(1,388)	2,129)	3,137)	1,759)	1,877)	2,045)
Valuation Ratio
EV/FCFF³	—	45.17	39.45	46.38	38.13	24.76
Benchmarks
EV/FCFF, Competitors⁴
Procter & Gamble Co.	27.39	26.63	22.86	23.81	25.13	19.59
EV/FCFF, Industry
Consumer Staples	28.47	29.57	20.78	22.85	23.31	—

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 60,132 ÷ -1,388 = —

⁴ Click competitor name to see calculations.

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Estée Lauder Cos. Inc. (NYSE:EL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical