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

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Estée Lauder Cos. Inc., current price multiples

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Estée Lauder Cos. Inc. Colgate-Palmolive Co. Kimberly-Clark Corp. Nike Inc. Personal Goods Consumer Goods
Selected Financial Data
Current share price (P) $293.81
No. shares of common stock outstanding 362,759,496
Growth rate (g) 16.33%
 
Earnings per share (EPS) $1.89
Next year expected EPS $2.19
Operating profit per share $1.67
Sales per share $39.40
Book value per share (BVPS) $10.85
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 155.82 24.13 18.82 84.23 41.57 48.81
Price to next year expected earnings 133.95 3.89 7.63 71.88 31.98 45.12
Price-earnings-growth (PEG) 9.54 0.05 0.13 4.90 1.39 5.96
Price to operating profit (P/OP) 175.88 16.74 13.64 68.65 31.53 32.34
Price to sales (P/S) 7.46 3.95 2.31 5.72 4.88 4.24
Price to book value (P/BV) 27.09 87.53 70.71 26.55 31.81 12.97

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Estée Lauder Cos. Inc., historical price multiples

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Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Price to earnings (P/E) 117.59 39.84 44.93 31.37 29.69 28.14
Price to operating profit (P/OP) 132.73 30.75 24.26 23.16 20.55 19.08
Price to sales (P/S) 5.63 4.79 3.64 3.31 2.94 2.84
Price to book value (P/BV) 20.44 16.22 10.62 8.94 9.27 8.41

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Estée Lauder Cos. Inc.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Estée Lauder Cos. Inc.’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Estée Lauder Cos. Inc.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Estée Lauder Cos. Inc.’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
No. shares of common stock outstanding1 360,804,641 360,756,333 367,194,210 367,956,150 365,713,211 372,906,890
Selected Financial Data (US$)
Net earnings attributable to The Estée Lauder Companies Inc. (in millions) 684  1,785  1,108  1,249  1,115  1,089 
Earnings per share (EPS)2 1.90 4.95 3.02 3.39 3.05 2.92
Share price1, 3 222.93 197.15 135.59 106.50 90.50 82.18
Valuation Ratio
P/E ratio4 117.59 39.84 44.93 31.37 29.69 28.14
Benchmarks
P/E Ratio, Competitors5
Colgate-Palmolive Co. 24.79 27.55 23.95 30.80 26.92
Kimberly-Clark Corp. 19.00 22.94 27.69 17.20 20.22
Nike Inc. 60.47 33.72 63.89 22.90 25.43 29.79
P/E Ratio, Sector
Personal Goods 31.11 39.38 24.29 25.12
P/E Ratio, Industry
Consumer Goods 33.96 20.23 29.96 19.94

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net earnings attributable to The Estée Lauder Companies Inc. ÷ No. shares of common stock outstanding
= 684,000,000 ÷ 360,804,641 = 1.90

3 Closing price as at the filing date of Estée Lauder Cos. Inc.’s Annual Report.

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 222.93 ÷ 1.90 = 117.59

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Estée Lauder Cos. Inc.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
No. shares of common stock outstanding1 360,804,641 360,756,333 367,194,210 367,956,150 365,713,211 372,906,890
Selected Financial Data (US$)
Operating income (in millions) 606  2,313  2,052  1,692  1,610  1,606 
Operating profit per share2 1.68 6.41 5.59 4.60 4.40 4.31
Share price1, 3 222.93 197.15 135.59 106.50 90.50 82.18
Valuation Ratio
P/OP ratio4 132.73 30.75 24.26 23.16 20.55 19.08
Benchmarks
P/OP Ratio, Competitors5
Colgate-Palmolive Co. 17.19 18.35 15.56 17.37 17.13
Kimberly-Clark Corp. 13.78 16.54 17.52 11.87 13.20
Nike Inc. 49.29 28.47 27.78 20.45 21.24 23.36
P/OP Ratio, Sector
Personal Goods 23.60 21.72 17.84 17.96
P/OP Ratio, Industry
Consumer Goods 22.50 16.85 16.79 16.76

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 606,000,000 ÷ 360,804,641 = 1.68

3 Closing price as at the filing date of Estée Lauder Cos. Inc.’s Annual Report.

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 222.93 ÷ 1.68 = 132.73

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Estée Lauder Cos. Inc.’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
No. shares of common stock outstanding1 360,804,641 360,756,333 367,194,210 367,956,150 365,713,211 372,906,890
Selected Financial Data (US$)
Net sales (in millions) 14,294  14,863  13,683  11,824  11,262  10,780 
Sales per share2 39.62 41.20 37.26 32.13 30.80 28.91
Share price1, 3 222.93 197.15 135.59 106.50 90.50 82.18
Valuation Ratio
P/S ratio4 5.63 4.79 3.64 3.31 2.94 2.84
Benchmarks
P/S Ratio, Competitors5
Colgate-Palmolive Co. 4.06 4.16 3.70 4.03 4.33
Kimberly-Clark Corp. 2.34 2.68 2.11 2.15 2.41
Nike Inc. 4.11 3.47 3.39 2.83 2.95 3.19
P/S Ratio, Sector
Personal Goods 3.65 3.21 2.98 3.09
P/S Ratio, Industry
Consumer Goods 2.95 2.33 2.54 2.39

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 14,294,000,000 ÷ 360,804,641 = 39.62

3 Closing price as at the filing date of Estée Lauder Cos. Inc.’s Annual Report.

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 222.93 ÷ 39.62 = 5.63

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Estée Lauder Cos. Inc.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
No. shares of common stock outstanding1 360,804,641 360,756,333 367,194,210 367,956,150 365,713,211 372,906,890
Selected Financial Data (US$)
Stockholders’ equity, The Estée Lauder Companies Inc. (in millions) 3,935  4,386  4,688  4,384  3,572  3,643 
Book value per share (BVPS)2 10.91 12.16 12.77 11.91 9.77 9.77
Share price1, 3 222.93 197.15 135.59 106.50 90.50 82.18
Valuation Ratio
P/BV ratio4 20.44 16.22 10.62 8.94 9.27 8.41
Benchmarks
P/BV Ratio, Competitors5
Colgate-Palmolive Co. 89.90 557.38
Kimberly-Clark Corp. 71.40 62.27
Nike Inc. 19.06 15.03 12.59 7.83 7.80 7.67
P/BV Ratio, Sector
Personal Goods 23.81 19.12 13.70 15.38
P/BV Ratio, Industry
Consumer Goods 9.02 6.96 7.48 6.84

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Stockholders’ equity, The Estée Lauder Companies Inc. ÷ No. shares of common stock outstanding
= 3,935,000,000 ÷ 360,804,641 = 10.91

3 Closing price as at the filing date of Estée Lauder Cos. Inc.’s Annual Report.

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 222.93 ÷ 10.91 = 20.44

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Estée Lauder Cos. Inc.’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.