Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Estée Lauder Cos. Inc., historical price multiples (quarterly data)
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
The analysis of the financial ratios over the observed periods reveals several notable trends and fluctuations.
- Price to Earnings (P/E) Ratio
- The P/E ratio displays significant volatility from 2017 through mid-2023. Starting from the available data in late 2017, the ratio hovers around the mid-30s to low 40s, rising sharply to a peak exceeding 130 in late 2020. After this spike, a marked decline is observed through 2021 and the first half of 2022, with values reducing to the mid-20s. Subsequently, another increase is seen towards mid-2023, reaching over 65 before slightly receding to mid-50s. This pattern indicates periods of high market expectations and possible earnings compression or growth uncertainty during 2020, followed by partial normalization.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrors the volatility seen in the P/E ratio but generally exhibits even more pronounced peaks. Beginning in late 2017 in the low-to-mid 20s, this ratio climbs steadily to a substantial peak above 150 by the end of 2020. Subsequently, it experiences a sharp decline during 2021 and 2022, stabilizing around mid-20s to mid-40s by mid-2023. This trend suggests fluctuating operating profitability or market valuation multiples, with a peak in late 2020 potentially reflecting market stress or investor optimism relative to operating income.
- Price to Sales (P/S) Ratio
- The P/S ratio shows a generally upward trajectory from 2017 into 2021, starting near 3.6 and reaching a peak close to 7.6 in late 2021, indicating increasing valuation multiples relative to sales. In 2022 and 2023, the ratio declines steadily, falling below 4 by mid-2023. This movement may reflect changing market sentiment, revenue growth dynamics, or profitability changes influencing how sales are valued.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio demonstrates a gradual increase from under 10 in late 2017 to a peak near 20 by mid-2021. After this high point, the ratio declines to around 10 by mid-2023. This indicates a rising premium on the book value of equity until mid-2021, followed by a reversal which may correspond to adjustments in asset valuation, equity market performance, or investor sentiment regarding the company's net asset worth.
Overall, the ratios highlight a strong increase in valuation multiples culminating in late 2020 and mid-2021, followed by a marked correction or normalization phase through 2022 and into mid-2023. These patterns may reflect external market conditions, changes in company performance, or broader economic factors impacting investor expectations and valuation metrics for the company.
Price to Earnings (P/E)
Estée Lauder Cos. Inc., historical P/E calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 357,690,815 | 357,413,019 | 357,220,198 | 356,812,327 | 356,903,600 | 357,347,200 | 358,666,520 | 359,947,394 | 361,287,242 | 362,511,874 | 362,759,496 | 361,605,644 | 360,804,641 | 359,998,626 | 359,540,246 | 359,813,553 | 360,756,333 | 361,872,568 | 361,162,511 | 362,852,542 | 367,194,210 | 367,038,912 | 367,777,184 | 368,237,122 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||
| Net earnings (loss) attributable to The Estée Lauder Companies Inc. (in millions) | (33) | 156) | 394) | 489) | 52) | 558) | 1,088) | 692) | 1,018) | 456) | 873) | 523) | (462) | (6) | 557) | 595) | 157) | 555) | 573) | 500) | 186) | 372) | 123) | 427) | |||||||
| Earnings per share (EPS)2 | 2.81 | 3.05 | 4.18 | 6.13 | 6.70 | 9.39 | 9.07 | 8.44 | 7.94 | 3.83 | 2.56 | 1.69 | 1.90 | 3.62 | 5.18 | 5.22 | 4.95 | 5.01 | 4.52 | 3.25 | 3.02 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 156.69 | 202.70 | 268.41 | 189.96 | 265.43 | 245.52 | 303.12 | 338.62 | 340.82 | 288.93 | 272.81 | 223.85 | 222.93 | 172.54 | 211.53 | 186.27 | 197.15 | 170.30 | 152.02 | 137.44 | 135.59 | 132.59 | 134.39 | 122.12 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||
| P/E ratio4 | 55.71 | 66.40 | 64.22 | 30.99 | 39.64 | 26.14 | 33.41 | 40.11 | 42.90 | 75.35 | 106.64 | 132.26 | 117.59 | 47.67 | 40.80 | 35.65 | 39.84 | 33.97 | 33.66 | 42.23 | 44.93 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||||||||
| Procter & Gamble Co. | 25.47 | 26.20 | 24.00 | 21.49 | 23.91 | 27.43 | 27.29 | 24.55 | 24.46 | 24.20 | 23.92 | 26.27 | 25.85 | 63.19 | 67.79 | 75.63 | 78.69 | — | — | — | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
1 Data adjusted for splits and stock dividends.
2 Q4 2023 Calculation
EPS
= (Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q4 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q3 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q2 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q1 2023)
÷ No. shares of common stock outstanding
= (-33,000,000 + 156,000,000 + 394,000,000 + 489,000,000)
÷ 357,690,815 = 2.81
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Quarterly or Annual Report.
4 Q4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 156.69 ÷ 2.81 = 55.71
5 Click competitor name to see calculations.
The analyzed financial data presents notable trends over several quarters for key metrics including share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.
- Share Price
- The share price demonstrated a general upward trend from late 2017 through 2021, rising from approximately $122 in September 2017 to a peak near $340 by mid-2021. This increase reflects strong investor confidence and potentially favorable market conditions during that period. However, from late 2021 onward, a downward correction is evident, with the share price declining to around $157 by mid-2023, indicating a period of market adjustment or potential challenges impacting investor sentiment.
- Earnings Per Share (EPS)
- The EPS data, available beginning in the first quarter of 2018, shows positive growth with fluctuations throughout the observed quarters. EPS increased steadily from $3.02 in early 2018 to reach a peak of $9.39 by mid-2022, indicating improved profitability and operational performance over this period. Following this peak, a declining trend is observable, with EPS decreasing to $2.81 by mid-2023, which may suggest emerging operational challenges or market headwinds affecting earnings.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibits significant variability over the analyzed timeframe. Initially, it remained in the 30s and 40s during 2018 and 2019, suggesting a valuation consistent with earnings growth. Starting in 2020, the P/E ratio spiked dramatically, reaching values exceeding 100 at times, signaling either elevated investor expectations or suppressed earnings during this period. Post-2021, the P/E ratio generally decreased, aligning with falling share prices and EPS, yet still showing volatility, implying adjustments in market valuation relative to earnings performance.
Overall, the data indicates a period of growth and profitability improvement until approximately mid-2022, followed by a downward adjustment phase reflected in declining share price and EPS values. The volatility in the P/E ratio highlights changing investor perceptions and market conditions impacting the company’s valuation over time.
Price to Operating Profit (P/OP)
Estée Lauder Cos. Inc., historical P/OP calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 357,690,815 | 357,413,019 | 357,220,198 | 356,812,327 | 356,903,600 | 357,347,200 | 358,666,520 | 359,947,394 | 361,287,242 | 362,511,874 | 362,759,496 | 361,605,644 | 360,804,641 | 359,998,626 | 359,540,246 | 359,813,553 | 360,756,333 | 361,872,568 | 361,162,511 | 362,852,542 | 367,194,210 | 367,038,912 | 367,777,184 | 368,237,122 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||
| Operating income (in millions) | (5) | 297) | 556) | 661) | 79) | 738) | 1,418) | 935) | 234) | 616) | 1,063) | 705) | (543) | 109) | 261) | 779) | 216) | 674) | 771) | 652) | 277) | 497) | 710) | 568) | |||||||
| Operating profit per share2 | 4.22 | 4.46 | 5.69 | 8.12 | 8.88 | 9.30 | 8.93 | 7.91 | 7.25 | 5.08 | 3.68 | 1.47 | 1.68 | 3.79 | 5.37 | 6.78 | 6.41 | 6.56 | 6.08 | 5.89 | 5.59 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 156.69 | 202.70 | 268.41 | 189.96 | 265.43 | 245.52 | 303.12 | 338.62 | 340.82 | 288.93 | 272.81 | 223.85 | 222.93 | 172.54 | 211.53 | 186.27 | 197.15 | 170.30 | 152.02 | 137.44 | 135.59 | 132.59 | 134.39 | 122.12 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||
| P/OP ratio4 | 37.14 | 45.48 | 47.14 | 23.40 | 29.88 | 26.39 | 33.94 | 42.80 | 47.03 | 56.89 | 74.19 | 152.15 | 132.73 | 45.50 | 39.41 | 27.47 | 30.75 | 25.96 | 24.99 | 23.35 | 24.26 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||||||||
| Procter & Gamble Co. | 20.19 | 20.94 | 19.37 | 17.32 | 19.41 | 22.11 | 22.17 | 19.20 | 19.08 | 18.81 | 18.46 | 21.16 | 21.01 | 42.45 | 45.33 | 48.96 | 52.12 | — | — | — | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
1 Data adjusted for splits and stock dividends.
2 Q4 2023 Calculation
Operating profit per share
= (Operating incomeQ4 2023
+ Operating incomeQ3 2023
+ Operating incomeQ2 2023
+ Operating incomeQ1 2023)
÷ No. shares of common stock outstanding
= (-5,000,000 + 297,000,000 + 556,000,000 + 661,000,000)
÷ 357,690,815 = 4.22
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Quarterly or Annual Report.
4 Q4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 156.69 ÷ 4.22 = 37.14
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a general upward trajectory from September 2017 through December 2021, increasing from $122.12 to a peak of $340.82 in June 2021. This growth was characterized by steady increments with notable acceleration between December 2020 and June 2021. Following this peak, the share price demonstrated increased volatility and a subsequent decline, falling to $156.69 by June 2023. The drop after December 2021 suggests a reversal in investor sentiment or external factors affecting market valuation.
- Operating Profit Per Share (OPPS) Trends
- Operating profit per share showed a generally positive trend starting from March 2018, increasing consistently from $5.59 to a high of $9.30 in June 2022. This increase occurred steadily with minor fluctuations. A decline followed post-June 2022, with OPPS falling to $4.22 by June 2023. The initial growth period indicates improving operational profitability, while the later decrease suggests emerging pressures on earnings or operational challenges.
- Price to Operating Profit (P/OP) Ratio Trends
- The P/OP ratio began at relatively moderate levels (around 23-30) from March 2018 to September 2019, then surged significantly during the COVID-19 pandemic period, reaching extremely high levels such as 132.73 in September 2020 and peaking at 152.15 in December 2020. This reflects a sharp disconnect between share price and operating profit during that period, possibly influenced by market volatility or investor expectations. Post-pandemic, the ratio gradually normalized but remained elevated compared to earlier years, ranging between 23.4 and 47.14 up to June 2023, indicating continued cautious market valuation relative to profits.
- Interrelations and Insights
- There is a notable divergence between share price peaks and operating profit peaks. The share price achieved its highest point earlier (June 2021) than operating profit per share (June 2022). The elevated P/OP ratios during 2020 suggest that share prices were not fully aligned with underlying profitability, possibly driven by market speculation or external economic factors. The subsequent declines in both share price and operating profit after mid-2022 indicate a contraction phase or corrective adjustment in both market valuation and core earnings. The volatility in the P/OP ratio during this time further highlights uncertainty regarding sustainable performance levels.
Price to Sales (P/S)
Estée Lauder Cos. Inc., historical P/S calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 357,690,815 | 357,413,019 | 357,220,198 | 356,812,327 | 356,903,600 | 357,347,200 | 358,666,520 | 359,947,394 | 361,287,242 | 362,511,874 | 362,759,496 | 361,605,644 | 360,804,641 | 359,998,626 | 359,540,246 | 359,813,553 | 360,756,333 | 361,872,568 | 361,162,511 | 362,852,542 | 367,194,210 | 367,038,912 | 367,777,184 | 368,237,122 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||
| Net sales (in millions) | 3,609) | 3,751) | 4,620) | 3,930) | 3,561) | 4,245) | 5,539) | 4,392) | 3,936) | 3,864) | 4,853) | 3,562) | 2,430) | 3,345) | 4,624) | 3,895) | 3,590) | 3,744) | 4,005) | 3,524) | 3,295) | 3,370) | 3,744) | 3,274) | |||||||
| Sales per share2 | 44.48 | 44.38 | 45.79 | 48.41 | 49.70 | 50.68 | 49.44 | 47.35 | 44.88 | 40.58 | 39.12 | 38.61 | 39.62 | 42.93 | 44.09 | 42.34 | 41.20 | 40.26 | 39.30 | 38.40 | 37.26 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 156.69 | 202.70 | 268.41 | 189.96 | 265.43 | 245.52 | 303.12 | 338.62 | 340.82 | 288.93 | 272.81 | 223.85 | 222.93 | 172.54 | 211.53 | 186.27 | 197.15 | 170.30 | 152.02 | 137.44 | 135.59 | 132.59 | 134.39 | 122.12 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||
| P/S ratio4 | 3.52 | 4.57 | 5.86 | 3.92 | 5.34 | 4.84 | 6.13 | 7.15 | 7.59 | 7.12 | 6.97 | 5.80 | 5.63 | 4.02 | 4.80 | 4.40 | 4.79 | 4.23 | 3.87 | 3.58 | 3.64 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||||||||
| Procter & Gamble Co. | 4.46 | 4.54 | 4.19 | 3.82 | 4.31 | 4.93 | 4.96 | 4.41 | 4.51 | 4.50 | 4.39 | 4.88 | 4.65 | 4.24 | 4.44 | 4.43 | 4.22 | — | — | — | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
1 Data adjusted for splits and stock dividends.
2 Q4 2023 Calculation
Sales per share
= (Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023)
÷ No. shares of common stock outstanding
= (3,609,000,000 + 3,751,000,000 + 4,620,000,000 + 3,930,000,000)
÷ 357,690,815 = 44.48
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Quarterly or Annual Report.
4 Q4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 156.69 ÷ 44.48 = 3.52
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trajectory from September 2017 through December 2021, rising from $122.12 to a peak around $340.82 in June 2021. However, following this high, the share price experienced a marked decline, falling to $156.69 by June 2023. This suggests a period of strong growth followed by a significant correction or market downturn.
- Sales Per Share Development
- Sales per share data begins in June 2018 at $37.26, showing a gradual increase over the subsequent years, reaching a high of $50.68 in September 2021. After this peak, sales per share slightly decreased but remained relatively stable, ending at $44.48 in June 2023. This indicates steady sales growth leading up to 2021, followed by some normalization or mild decline thereafter.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio started at 3.64 in June 2018 and generally increased through 2021, peaking significantly at 7.59 in September 2021. This upward trend in P/S ratio indicates market valuations becoming more optimistic relative to sales until 2021. Post-peak, the ratio declined sharply to 3.52 by June 2023, reflecting a reduction in market valuation multiples, likely influenced by the falling share price and stabilizing sales figures.
- Summary of Financial Trends
- The data reveals a strong growth phase in share price and sales per share from 2017 through 2021, with valuations expanding as reflected in rising P/S ratios. The peak in these metrics occurred around mid to late 2021, after which both market valuations and share price underwent a pronounced decline. Sales per share showed only a moderate decrease post-2021, suggesting that the share price correction may have been driven more by changes in market sentiment or external factors than by a fundamental deterioration in sales.
Price to Book Value (P/BV)
Estée Lauder Cos. Inc., historical P/BV calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 357,690,815 | 357,413,019 | 357,220,198 | 356,812,327 | 356,903,600 | 357,347,200 | 358,666,520 | 359,947,394 | 361,287,242 | 362,511,874 | 362,759,496 | 361,605,644 | 360,804,641 | 359,998,626 | 359,540,246 | 359,813,553 | 360,756,333 | 361,872,568 | 361,162,511 | 362,852,542 | 367,194,210 | 367,038,912 | 367,777,184 | 368,237,122 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||
| Stockholders’ equity, The Estée Lauder Companies Inc. (in millions) | 5,585) | 5,877) | 5,902) | 5,517) | 5,590) | 6,150) | 6,218) | 6,081) | 6,057) | 5,528) | 5,421) | 4,452) | 3,935) | 4,329) | 4,574) | 4,530) | 4,386) | 4,588) | 4,306) | 4,406) | 4,688) | 4,711) | 4,565) | 4,731) | |||||||
| Book value per share (BVPS)2 | 15.61 | 16.44 | 16.52 | 15.46 | 15.66 | 17.21 | 17.34 | 16.89 | 16.77 | 15.25 | 14.94 | 12.31 | 10.91 | 12.03 | 12.72 | 12.59 | 12.16 | 12.68 | 11.92 | 12.14 | 12.77 | 12.84 | 12.41 | 12.85 | |||||||
| Share price1, 3 | 156.69 | 202.70 | 268.41 | 189.96 | 265.43 | 245.52 | 303.12 | 338.62 | 340.82 | 288.93 | 272.81 | 223.85 | 222.93 | 172.54 | 211.53 | 186.27 | 197.15 | 170.30 | 152.02 | 137.44 | 135.59 | 132.59 | 134.39 | 122.12 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||
| P/BV ratio4 | 10.04 | 12.33 | 16.25 | 12.29 | 16.95 | 14.27 | 17.48 | 20.04 | 20.33 | 18.95 | 18.26 | 18.18 | 20.44 | 14.35 | 16.63 | 14.80 | 16.22 | 13.43 | 12.75 | 11.32 | 10.62 | 10.33 | 10.83 | 9.51 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||||||||
| Procter & Gamble Co. | 7.83 | 8.15 | 7.56 | 6.97 | 7.42 | 8.63 | 8.70 | 7.38 | 7.40 | 7.24 | 6.74 | 7.33 | 7.09 | 6.56 | 6.78 | 6.54 | 6.06 | 4.70 | 4.39 | 4.16 | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
1 Data adjusted for splits and stock dividends.
2 Q4 2023 Calculation
BVPS = Stockholders’ equity, The Estée Lauder Companies Inc. ÷ No. shares of common stock outstanding
= 5,585,000,000 ÷ 357,690,815 = 15.61
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Quarterly or Annual Report.
4 Q4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 156.69 ÷ 15.61 = 10.04
5 Click competitor name to see calculations.
- Share Price
- The share price shows an overall upward trend from September 2017 through mid-2021, increasing from approximately $122 to a peak exceeding $340 by June 2021. Subsequent to this peak, the price exhibits a notable decline with fluctuations, dropping to around $157 by June 2023. Therefore, there is significant volatility observed post the 2021 peak with a downward correction extending into 2023.
- Book Value Per Share (BVPS)
- BVPS remains relatively stable across the period, fluctuating within a narrower range compared to share price. It starts near $12.85 in late 2017, dips slightly in 2018, and then rises gradually, reaching a high of roughly $17.34 in late 2021. Following this, it experiences a slight modest decline through 2023, settling in the mid-$15 to $16 range. The BVPS trend suggests a steady increase in net asset value per share across the years with mild recession towards the end.
- Price to Book Value Ratio (P/BV)
- The P/BV ratio trends upward sharply until mid-2021, increasing from approximately 9.5 to over 20, reflecting elevated market valuations relative to book value. After the peak in mid-2021, the ratio declines markedly, mirroring the falling share price and relatively stable BVPS. It drops to near 10 by mid-2023, indicating a reversion toward more conservative valuation levels compared to the earlier period.
- Overall Analysis
- The data reveals a period of significant price appreciation culminating around mid-2021, supported by gradual growth in book value per share. The market valuation, as indicated by P/BV, rose sharply during this time, suggesting investor optimism or growth expectations. However, post-2021, there is a clear correction phase with share price and P/BV ratio declining considerably despite a relatively stable book value. This could imply changing market sentiment or external factors impacting perceived company value. The stability of BVPS throughout indicates that intrinsic book value fundamentals have been less volatile, underscoring that the observed fluctuations in market price and valuation ratios are influenced predominantly by market dynamics rather than fundamental equity changes.