Estée Lauder Cos. Inc., FCFF calculation

US$ in millions

	12 months ended	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Net earnings attributable to The Estée Lauder Companies Inc.
	Net earnings attributable to noncontrolling interests
	Net noncash charges
	Changes in operating assets and liabilities
	Net cash flows provided by operating activities
	Cash paid during the year for interest, net of tax¹
	Capital expenditures
	Proceeds from sale of property, plant and equipment
	Capital lease and asset retirement obligations incurred
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Estée Lauder Cos. Inc.’s 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.’s FCFF increased from 2017 to 2018 but then slightly declined from 2018 to 2019.

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

US$ in millions

	12 months ended	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Effective Income Tax Rate (EITR)
	EITR¹
	Interest Paid, Net of Tax
	Cash paid during the year for interest, before tax
	Less: Cash paid during the year for interest, tax²
	Cash paid during the year for interest, net of tax

² 2019 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= hidden × hidden = hidden

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors¹
Colgate-Palmolive Co.
Kimberly-Clark Corp.
Nike Inc.
EV/FCFF, Sector
Personal Goods
EV/FCFF, Industry
Consumer Goods

¹ Click competitor name to see calculations.

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if 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, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors⁴
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	EV/FCFF, Sector
	Personal Goods
	EV/FCFF, Industry
	Consumer Goods

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

⁴ Click competitor name to see calculations.

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Estée Lauder Cos. Inc.’s EV/FCFF ratio declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

	Estée Lauder Cos. Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Estée Lauder Cos. Inc. (EL)

Enterprise Value to FCFF (EV/FCFF)