Common Stock Valuation Ratios (Price Multiples)
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).
Current Valuation Ratios
Estée Lauder Cos. Inc., current price multiples
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | Consumer Staples | |||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Current share price (P) | $156.69 | ||||
| No. shares of common stock outstanding | 357,690,815 | ||||
| Growth rate (g) | 16.03% | ||||
| Earnings per share (EPS) | $2.81 | ||||
| Next year expected EPS | $3.26 | ||||
| Operating profit per share | $4.22 | ||||
| Sales per share | $44.48 | ||||
| Book value per share (BVPS) | $15.61 | ||||
| Valuation Ratios (Price Multiples) | |||||
| Price to earnings (P/E) | 55.71 | 25.87 | 36.96 | ||
| Price to next year expected earnings | 48.02 | 23.15 | 33.07 | ||
| Price-earnings-growth (PEG) | 3.48 | 2.21 | 3.14 | ||
| Price to operating profit (P/OP) | 37.14 | 20.36 | 27.53 | ||
| Price to sales (P/S) | 3.52 | 4.49 | 2.01 | ||
| Price to book value (P/BV) | 10.04 | 7.51 | 11.30 | ||
Based on: 10-K (reporting date: 2023-06-30).
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
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).
- Price to earnings (P/E) ratio
- The P/E ratio shows significant fluctuations over the observed periods, peaking notably in 2020 at 117.59, which represents a substantial increase compared to prior years. This spike suggests an exceptional market valuation relative to earnings during that year, possibly driven by unusual circumstances. Following that peak, the ratio decreases substantially in 2021 to 42.9 and continues to moderate, reaching 55.71 in 2023. Overall, while the P/E ratio remains elevated compared to 2018 and 2019, it indicates a normalization trend post-2020.
- Price to operating profit (P/OP) ratio
- The P/OP ratio exhibits a pattern somewhat similar to the P/E ratio, with a marked peak in 2020 at 132.73, suggesting a high valuation relative to operating profitability during that year. Before this peak, the ratio rose from 24.26 in 2018 to 30.75 in 2019, indicating increasing investor expectations. After 2020, the ratio decreased significantly to 47.03 in 2021 and further reduced to 29.88 in 2022, before a slight increase to 37.14 in 2023. These changes imply volatility in the market's assessment of operating profit relative to stock price, with a tendency to revert towards pre-2020 levels.
- Price to sales (P/S) ratio
- The P/S ratio generally trends upward from 2018 through 2021, increasing from 3.64 to 7.59, indicating growing investor valuation relative to sales over this period. However, from 2021 onwards, there is a notable decline, dropping to 5.34 in 2022 and further to 3.52 in 2023, reaching levels below those at the start of the period. This decline may reflect adjustments in market perceptions of sales growth potential or profitability margins.
- Price to book value (P/BV) ratio
- The P/BV ratio shows a steady increase from 2018 at 10.62, rising sharply to 20.44 in 2020 and maintaining a high level through 2021 at 20.33. Subsequently, the ratio declines considerably to 16.95 in 2022 and further down to 10.04 in 2023, almost returning to the 2018 level. This pattern indicates that market valuation relative to book value expanded significantly through 2020, followed by a reversal in the following years, potentially reflecting changes in asset values, equity performance, or overall market conditions.
Price to Earnings (P/E)
Estée Lauder Cos. Inc., historical P/E 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$) | |||||||
| Net earnings attributable to The Estée Lauder Companies Inc. (in millions) | 1,006) | 2,390) | 2,870) | 684) | 1,785) | 1,108) | |
| Earnings per share (EPS)2 | 2.81 | 6.70 | 7.94 | 1.90 | 4.95 | 3.02 | |
| Share price1, 3 | 156.69 | 265.43 | 340.82 | 222.93 | 197.15 | 135.59 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 55.71 | 39.64 | 42.90 | 117.59 | 39.84 | 44.93 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Procter & Gamble Co. | 25.47 | 23.91 | 24.46 | 25.85 | 78.69 | — | |
| P/E Ratio, Industry | |||||||
| Consumer Staples | 26.62 | 25.35 | 26.07 | 24.12 | — | — | |
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 2023 Calculation
EPS = Net earnings attributable to The Estée Lauder Companies Inc. ÷ No. shares of common stock outstanding
= 1,006,000,000 ÷ 357,690,815 = 2.81
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 156.69 ÷ 2.81 = 55.71
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a significant upward trend from 2018 to 2021, increasing from $135.59 to $340.82, indicating strong market confidence and growth expectations during this period. However, following this peak, there was a notable decline over the next two years, dropping to $265.43 in 2022 and further to $156.69 in 2023, suggesting a loss in market valuation or changing investor sentiment.
- Earnings Per Share (EPS)
- EPS showed variation across the analysed years. Starting at $3.02 in 2018, it increased substantially to $4.95 in 2019. It then saw a significant decrease in 2020 to $1.90, possibly reflecting operational challenges or external factors affecting profitability. A marked recovery occurred in 2021, with EPS reaching $7.94, the highest in the period analysed. This was followed by a decline to $6.70 in 2022 and a sharper reduction to $2.81 in 2023, indicating volatility in earnings and potential earnings pressure in recent years.
- Price to Earnings (P/E) Ratio
- The P/E ratio displayed fluctuations that reflect shifts in market valuation relative to earnings. Starting at a high 44.93 in 2018, the ratio slightly decreased to 39.84 in 2019. In 2020, the ratio spiked dramatically to 117.59, likely driven by reduced earnings relative to share price, suggesting investor expectations remained high despite profitability challenges. The P/E ratio normalized somewhat in 2021 and 2022 to around 40, aligning with the recovery in earnings. It increased again to 55.71 in 2023, reflecting a higher valuation relative to earnings amid the recent drop in EPS.
Price to Operating Profit (P/OP)
Estée Lauder Cos. Inc., historical P/OP calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 357,690,815 | 356,903,600 | 361,287,242 | 360,804,641 | 360,756,333 | 367,194,210 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in millions) | 1,509) | 3,170) | 2,618) | 606) | 2,313) | 2,052) | |
| Operating profit per share2 | 4.22 | 8.88 | 7.25 | 1.68 | 6.41 | 5.59 | |
| Share price1, 3 | 156.69 | 265.43 | 340.82 | 222.93 | 197.15 | 135.59 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 37.14 | 29.88 | 47.03 | 132.73 | 30.75 | 24.26 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Procter & Gamble Co. | 20.19 | 19.41 | 19.08 | 21.01 | 52.12 | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Staples | 19.82 | 18.28 | 19.01 | 18.29 | — | — | |
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 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,509,000,000 ÷ 357,690,815 = 4.22
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.
4 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
- The share price demonstrated a general upward trend from June 2018 through June 2021, increasing from 135.59 US$ to a peak of 340.82 US$. However, subsequently, a notable decline occurred with the price dropping to 265.43 US$ in June 2022 and further decreasing to 156.69 US$ by June 2023. This represents a significant correction following the earlier growth period.
- Operating Profit per Share (OP)
- Operating profit per share showed fluctuating performance over the observed periods. It increased moderately from 5.59 US$ in June 2018 to 6.41 US$ in June 2019, but then sharply decreased to 1.68 US$ in June 2020. A strong recovery followed, with OP reaching 7.25 US$ in June 2021 and peaking at 8.88 US$ in June 2022. The figure declined again to 4.22 US$ in June 2023, indicating volatility in profitability levels.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio reflects significant variability in market valuation relative to operating profit. Starting at 24.26 in June 2018, it rose to 30.75 in June 2019 before spiking dramatically to 132.73 in June 2020, correlating with the low operating profit at that time. Subsequently, the ratio dropped sharply to 47.03 in June 2021 and stabilized somewhat around 29.88 in June 2022. By June 2023, it increased again to 37.14, indicating a market valuation that may be pricing in factors beyond current operating profitability.
- Summary
- The data reveals a period of growth and peak valuation around 2021, followed by a marked adjustment in both share price and profitability through 2023. The sharp fluctuations in operating profit per share and the associated P/OP ratio highlight a volatile operating environment. The recent increase in the P/OP ratio despite declining operating profit suggests cautious investor sentiment or expectations of future earnings recovery that have yet to materialize.
Price to Sales (P/S)
Estée Lauder Cos. Inc., historical P/S 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$) | |||||||
| Net sales (in millions) | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Sales per share2 | 44.48 | 49.70 | 44.88 | 39.62 | 41.20 | 37.26 | |
| Share price1, 3 | 156.69 | 265.43 | 340.82 | 222.93 | 197.15 | 135.59 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 3.52 | 5.34 | 7.59 | 5.63 | 4.79 | 3.64 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Procter & Gamble Co. | 4.46 | 4.31 | 4.51 | 4.65 | 4.22 | — | |
| P/S Ratio, Industry | |||||||
| Consumer Staples | 1.45 | 1.54 | 1.61 | 1.49 | — | — | |
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 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 15,910,000,000 ÷ 357,690,815 = 44.48
3 Closing price as at the filing date of Estée Lauder Cos. Inc. Annual Report.
4 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 Trends
- The share price exhibited a notable upward trajectory from June 30, 2018, reaching its peak on June 30, 2021, at $340.82. This represented more than a twofold increase from the $135.59 level observed in mid-2018. However, following this peak, the share price declined significantly, dropping to $265.43 in mid-2022 and further to $156.69 by June 30, 2023. The post-peak reduction brought the price back closer to its 2019 level, indicating heightened market volatility or changing investor sentiment in the most recent periods.
- Sales Per Share Evolution
- Sales per share generally trended upward from $37.26 in mid-2018, increasing to $44.88 by mid-2021. The highest sales per share value was recorded on June 30, 2022, at $49.70, indicating consistent revenue growth on a per-share basis over most of the period analyzed. However, in the latest period ending June 30, 2023, sales per share decreased somewhat to $44.48, signaling a potential slowdown or reversal in sales growth.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio reflected changing market valuation relative to sales. From 2018 to 2021, the ratio rose substantially from 3.64 to 7.59, suggesting that investors were willing to pay a higher premium per unit of sales during this period. This increase aligns with the sharp rise in the share price during the same timeframe. Subsequently, the P/S ratio declined notably in the two most recent years, reaching 3.52 by June 30, 2023, the lowest value in the dataset. This decline indicates a reduced market valuation relative to the sales achieved, which may be associated with the falling share price despite relatively stable sales per share.
- Overall Observations
- The data portray a phase of strong growth and increasing market optimism from 2018 through 2021, with rising share prices, expanding sales per share, and increasing valuation multiples. However, this growth phase concluded with a period of correction or weakening market sentiment during 2022 and 2023, with sharp declines in share price and P/S ratio, accompanied by a modest decrease in sales per share. The decoupling observed between stable sales per share and declining share price and valuation ratios in recent years points to potential external factors affecting market valuation or investor confidence.
Price to Book Value (P/BV)
Estée Lauder Cos. Inc., historical P/BV calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 357,690,815 | 356,903,600 | 361,287,242 | 360,804,641 | 360,756,333 | 367,194,210 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity, The Estée Lauder Companies Inc. (in millions) | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Book value per share (BVPS)2 | 15.61 | 15.66 | 16.77 | 10.91 | 12.16 | 12.77 | |
| Share price1, 3 | 156.69 | 265.43 | 340.82 | 222.93 | 197.15 | 135.59 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 10.04 | 16.95 | 20.33 | 20.44 | 16.22 | 10.62 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Procter & Gamble Co. | 7.83 | 7.42 | 7.40 | 7.09 | 6.06 | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Staples | 8.14 | 8.11 | 8.15 | 7.44 | — | — | |
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 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. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 156.69 ÷ 15.61 = 10.04
5 Click competitor name to see calculations.
The financial data reveal several notable trends regarding the company's share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the six-year period from June 2018 to June 2023.
- Share Price
- The share price exhibited overall growth from 2018 through 2021, rising from $135.59 to a peak of $340.82. However, after this peak, there was a significant decline in the following two years, dropping to $156.69 by June 2023. This represents a substantial decrease from the highest value recorded in 2021, indicating a notable reduction in market valuation during the last observed years.
- Book Value Per Share (BVPS)
- BVPS showed modest fluctuations throughout the period. It decreased slightly from $12.77 in 2018 to $10.91 in 2020, then experienced an increase to $16.77 in 2021. After 2021, BVPS slightly decreased to $15.66 in 2022 and remained almost stable at $15.61 in 2023. Overall, BVPS demonstrates a recovery and relative stability in the latter part of the time frame.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio followed a pattern aligned with changes in share price relative to BVPS. It increased substantially from 10.62 in 2018 to a peak of approximately 20.44 in 2020 and remained around 20.33 in 2021. Subsequently, it declined sharply to 10.04 by 2023. This indicates that the market's valuation premium over book value decreased significantly after 2021, potentially reflecting lower investor confidence or adjustments in market expectations.
In summary, the data show an initial period of strong growth in market valuation as reflected by rising share price and P/BV ratio until 2021, followed by a marked decline in both metrics through 2023. Meanwhile, the book value per share remained relatively stable with only moderate variation, suggesting that the decline in market price and valuation multiples may relate more to market sentiment or external factors rather than fundamental deterioration in net asset value.