EL Relative Valuation
EL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EL is overvalued; if below, it's undervalued.
Historical Valuation
Estee Lauder Companies Inc (EL) is now in the Fair zone, suggesting that its current forward PE ratio of 37.02 is considered Fairly compared with the five-year average of 44.59. The fair price of Estee Lauder Companies Inc (EL) is between 70.80 to 116.15 according to relative valuation methord.
Relative Value
Fair Zone
70.80-116.15
Current Price：86.09
Fair
37.02
PE
1Y
3Y
5Y
Trailing
Forward
16.39
EV/EBITDA
Estee Lauder Companies Inc. (EL) has a current EV/EBITDA of 16.39. The 5-year average EV/EBITDA is 23.36. The thresholds are as follows: Strongly Undervalued below 11.21, Undervalued between 11.21 and 17.29, Fairly Valued between 29.44 and 17.29, Overvalued between 29.44 and 35.51, and Strongly Overvalued above 35.51. The current Forward EV/EBITDA of 16.39 falls within the Undervalued range.
25.29
EV/EBIT
Estee Lauder Companies Inc. (EL) has a current EV/EBIT of 25.29. The 5-year average EV/EBIT is 32.02. The thresholds are as follows: Strongly Undervalued below 16.57, Undervalued between 16.57 and 24.30, Fairly Valued between 39.75 and 24.30, Overvalued between 39.75 and 47.47, and Strongly Overvalued above 47.47. The current Forward EV/EBIT of 25.29 falls within the Historic Trend Line -Fairly Valued range.
86.09
PS
Estee Lauder Companies Inc. (EL) has a current PS of 86.09. The 5-year average PS is 5.23. The thresholds are as follows: Strongly Undervalued below -14.35, Undervalued between -14.35 and -4.56, Fairly Valued between 15.02 and -4.56, Overvalued between 15.02 and 24.80, and Strongly Overvalued above 24.80. The current Forward PS of 86.09 falls within the Strongly Overvalued range.
22.76
P/OCF
Estee Lauder Companies Inc. (EL) has a current P/OCF of 22.76. The 5-year average P/OCF is 27.43. The thresholds are as follows: Strongly Undervalued below 10.44, Undervalued between 10.44 and 18.93, Fairly Valued between 35.92 and 18.93, Overvalued between 35.92 and 44.41, and Strongly Overvalued above 44.41. The current Forward P/OCF of 22.76 falls within the Historic Trend Line -Fairly Valued range.
38.20
P/FCF
Estee Lauder Companies Inc. (EL) has a current P/FCF of 38.20. The 5-year average P/FCF is 43.27. The thresholds are as follows: Strongly Undervalued below 14.51, Undervalued between 14.51 and 28.89, Fairly Valued between 57.65 and 28.89, Overvalued between 57.65 and 72.03, and Strongly Overvalued above 72.03. The current Forward P/FCF of 38.20 falls within the Historic Trend Line -Fairly Valued range.
Estee Lauder Companies Inc (EL) has a current Price-to-Book (P/B) ratio of 7.98. Compared to its 3-year average P/B ratio of 9.01 , the current P/B ratio is approximately -11.52% higher. Relative to its 5-year average P/B ratio of 12.60, the current P/B ratio is about -36.73% higher. Estee Lauder Companies Inc (EL) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 2.67%, the current FCF yield is approximately -98.74% lower. Relative to its 5-year average FCF yield of 2.51% , the current FCF yield is about -98.66% lower.
7.98
P/B
Median3y
9.01
Median5y
12.60
0.03
FCF Yield
Median3y
2.67
Median5y
2.51
Competitors Valuation Multiple
The average P/S ratio for EL's competitors is 69.03, providing a benchmark for relative valuation. Estee Lauder Companies Inc Corp (EL) exhibits a P/S ratio of 86.09, which is 24.71% above the industry average. Given its robust revenue growth of 3.57%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EL increased by 19.37% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -13.59 to -33.28.
The secondary factor is the Revenue Growth, contributed 3.57%to the performance.
Overall, the performance of EL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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