Estee Lauder Price To Sales vs. Price To Book
| EL Stock | USD 72.12 1.84 2.49% |
Estee Lauder Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.85 | 0.7166 |
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| Net Profit Margin | 0.0237 | 0.025 |
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| Operating Profit Margin | 0.096 | 0.0621 |
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| Pretax Profit Margin | 0.088 | 0.0495 |
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| Return On Assets | 0.0171 | 0.018 |
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| Return On Equity | 0.0697 | 0.0734 |
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For Estee Lauder profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Estee Lauder to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Estee Lauder Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Estee Lauder's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Estee Lauder Companies over time as well as its relative position and ranking within its peers.
Estee |
Estee Lauder's Revenue Breakdown by Earning Segment
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Is Personal Care Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Estee Lauder. If investors know Estee will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Estee Lauder listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.116 | Dividend Share 2.64 | Earnings Share 0.56 | Revenue Per Share 43.003 | Quarterly Revenue Growth (0.04) |
The market value of Estee Lauder Companies is measured differently than its book value, which is the value of Estee that is recorded on the company's balance sheet. Investors also form their own opinion of Estee Lauder's value that differs from its market value or its book value, called intrinsic value, which is Estee Lauder's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Estee Lauder's market value can be influenced by many factors that don't directly affect Estee Lauder's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Estee Lauder's value and its price as these two are different measures arrived at by different means. Investors typically determine if Estee Lauder is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Estee Lauder's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Estee Lauder Companies Price To Book vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Estee Lauder's current stock value. Our valuation model uses many indicators to compare Estee Lauder value to that of its competitors to determine the firm's financial worth. Estee Lauder Companies is rated below average in price to sales category among its peers. It also is rated below average in price to book category among its peers fabricating about 3.04 of Price To Book per Price To Sales. At this time, Estee Lauder's Price To Sales Ratio is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Estee Lauder by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Estee Price To Book vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Estee Lauder |
| = | 1.72 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Estee Lauder |
| = | 5.22 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Estee Price To Book Comparison
Estee Lauder is currently under evaluation in price to book category among its peers.
Estee Lauder Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Estee Lauder, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Estee Lauder will eventually generate negative long term returns. The profitability progress is the general direction of Estee Lauder's change in net profit over the period of time. It can combine multiple indicators of Estee Lauder, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.1 B | -1.1 B | |
| Operating Income | 970 M | 1.3 B | |
| Income Before Tax | 772 M | 1.2 B | |
| Total Other Income Expense Net | -198 M | -188.1 M | |
| Net Income | 409 M | 388.6 M | |
| Income Tax Expense | 363 M | 350 M | |
| Net Income Applicable To Common Shares | 1.2 B | 956.2 M | |
| Net Income From Continuing Ops | 409 M | 388.6 M | |
| Non Operating Income Net Other | 150.7 M | 158.2 M | |
| Interest Income | 167 M | 117.2 M | |
| Net Interest Income | -211 M | -200.4 M | |
| Change To Netincome | 439.3 M | 461.3 M | |
| Net Income Per Share | 1.09 | 1.55 | |
| Income Quality | 5.77 | 6.06 | |
| Net Income Per E B T | 0.51 | 0.51 |
Estee Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Estee Lauder. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Estee Lauder position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Estee Lauder's important profitability drivers and their relationship over time.
Use Estee Lauder in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Estee Lauder position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Estee Lauder will appreciate offsetting losses from the drop in the long position's value.Estee Lauder Pair Trading
Estee Lauder Companies Pair Trading Analysis
The ability to find closely correlated positions to Estee Lauder could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Estee Lauder when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Estee Lauder - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Estee Lauder Companies to buy it.
The correlation of Estee Lauder is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Estee Lauder moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Estee Lauder Companies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Estee Lauder can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Estee Lauder position
In addition to having Estee Lauder in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 46 constituents at this time.
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To fully project Estee Lauder's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Estee Lauder Companies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Estee Lauder's income statement, its balance sheet, and the statement of cash flows.