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 44.64 is considered Fairly compared with the five-year average of 44.48. The fair price of Estee Lauder Companies Inc (EL) is between 71.42 to 116.77 according to relative valuation methord.
Relative Value
Fair Zone
71.42-116.77
Current Price：103.82
Fair
44.64
PE
1Y
3Y
5Y
Trailing
Forward
18.49
EV/EBITDA
Estee Lauder Companies Inc. (EL) has a current EV/EBITDA of 18.49. The 5-year average EV/EBITDA is 23.16. The thresholds are as follows: Strongly Undervalued below 10.96, Undervalued between 10.96 and 17.06, Fairly Valued between 29.27 and 17.06, Overvalued between 29.27 and 35.37, and Strongly Overvalued above 35.37. The current Forward EV/EBITDA of 18.49 falls within the Historic Trend Line -Fairly Valued range.
28.52
EV/EBIT
Estee Lauder Companies Inc. (EL) has a current EV/EBIT of 28.52. The 5-year average EV/EBIT is 31.85. The thresholds are as follows: Strongly Undervalued below 16.43, Undervalued between 16.43 and 24.14, Fairly Valued between 39.56 and 24.14, Overvalued between 39.56 and 47.27, and Strongly Overvalued above 47.27. The current Forward EV/EBIT of 28.52 falls within the Historic Trend Line -Fairly Valued range.
2.44
PS
Estee Lauder Companies Inc. (EL) has a current PS of 2.44. The 5-year average PS is 4.08. The thresholds are as follows: Strongly Undervalued below 0.63, Undervalued between 0.63 and 2.36, Fairly Valued between 5.81 and 2.36, Overvalued between 5.81 and 7.54, and Strongly Overvalued above 7.54. The current Forward PS of 2.44 falls within the Historic Trend Line -Fairly Valued range.
26.95
P/OCF
Estee Lauder Companies Inc. (EL) has a current P/OCF of 26.95. The 5-year average P/OCF is 27.35. The thresholds are as follows: Strongly Undervalued below 10.49, Undervalued between 10.49 and 18.92, Fairly Valued between 35.77 and 18.92, Overvalued between 35.77 and 44.20, and Strongly Overvalued above 44.20. The current Forward P/OCF of 26.95 falls within the Historic Trend Line -Fairly Valued range.
48.12
P/FCF
Estee Lauder Companies Inc. (EL) has a current P/FCF of 48.12. The 5-year average P/FCF is 43.30. The thresholds are as follows: Strongly Undervalued below 14.88, Undervalued between 14.88 and 29.09, Fairly Valued between 57.51 and 29.09, Overvalued between 57.51 and 71.73, and Strongly Overvalued above 71.73. The current Forward P/FCF of 48.12 falls within the Historic Trend Line -Fairly Valued range.
Estee Lauder Companies Inc (EL) has a current Price-to-Book (P/B) ratio of 9.62. Compared to its 3-year average P/B ratio of 8.94 , the current P/B ratio is approximately 7.56% higher. Relative to its 5-year average P/B ratio of 12.50, the current P/B ratio is about -23.07% higher. Estee Lauder Companies Inc (EL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.70%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.53% , the current FCF yield is about -100.00% lower.
9.62
P/B
Median3y
8.94
Median5y
12.50
2.84
FCF Yield
Median3y
2.70
Median5y
2.53
Competitors Valuation Multiple
The average P/S ratio for EL's competitors is , providing a benchmark for relative valuation. Estee Lauder Companies Inc Corp (EL) exhibits a P/S ratio of , which is NaN% 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 38.46% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -15.20 to -40.14.
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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