Estée Lauder Cos. Inc., FCFE 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)
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)	—)
Proceeds (repayments) of current debt, net	983)	(4)	(744)	755)	(171)	(8)
Proceeds from issuance of long-term debt, net	1,995)	—)	596)	2,481)	—)	—)
Debt issuance costs	(15)	(1)	(4)	(18)	—)	—)
Repayments and redemptions of long-term debt	(265)	(18)	(459)	(513)	(1)	(2)
Free cash flow to equity (FCFE)	1,140)	1,977)	2,383)	4,362)	1,603)	1,934)

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
FCFE	Free cash flow to equity is the cash flow available to Estée Lauder Cos. Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Estée Lauder Cos. Inc. FCFE decreased from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	357,690,815
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,140)
FCFE per share	3.19
Current share price (P)	156.69
Valuation Ratio
P/FCFE	49.16
Benchmarks
P/FCFE, Competitors¹
Procter & Gamble Co.	22.95
P/FCFE, Industry
Consumer Staples	27.32

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

¹ Click competitor name to see calculations.

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

Estée Lauder Cos. Inc., historical P/FCFE calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
No. shares of common stock outstanding¹	357,690,815	356,903,600	361,287,242	360,804,641	360,756,333	367,194,210
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,140)	1,977)	2,383)	4,362)	1,603)	1,934)
FCFE per share³	3.19	5.54	6.60	12.09	4.44	5.27
Share price^1, 4	156.69	265.43	340.82	222.93	197.15	135.59
Valuation Ratio
P/FCFE⁵	49.16	47.92	51.67	18.44	44.37	25.74
Benchmarks
P/FCFE, Competitors⁶
Procter & Gamble Co.	21.89	22.37	29.39	17.20	25.81	20.74
P/FCFE, Industry
Consumer Staples	24.38	31.85	24.14	17.57	18.66	—

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 Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,140,000,000 ÷ 357,690,815 = 3.19

⁴ Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 156.69 ÷ 3.19 = 49.16

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Estée Lauder Cos. Inc. P/FCFE ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Estée Lauder Cos. Inc. (NYSE:EL)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical