Estee Lauder Valuation
| EL Stock | USD 85.48 3.20 3.89% |
At this time, the firm appears to be overvalued. Estee Lauder Companies shows a prevailing Real Value of $73.67 per share. The current price of the firm is $85.48. Our model computes the value of Estee Lauder Companies from reviewing the firm fundamentals such as Profit Margin of 0.01 %, shares outstanding of 233.44 M, and Current Valuation of 37.44 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Estee Lauder's valuation include:
Price Book 5.8585 | Enterprise Value | Enterprise Value Ebitda 21.3846 | Price Sales 1.9116 | Forward PE 51.0204 |
Overvalued
Today
Please note that Estee Lauder's price fluctuation is very steady at this time. Calculation of the real value of Estee Lauder Companies is based on 3 months time horizon. Increasing Estee Lauder's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Estee stock is determined by what a typical buyer is willing to pay for full or partial control of Estee Lauder Companies. Since Estee Lauder is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Estee Stock. However, Estee Lauder's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 85.48 | Real 73.67 | Target 82.94 | Hype 85.6 | Naive 86.37 |
The intrinsic value of Estee Lauder's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Estee Lauder's stock price.
Estimating the potential upside or downside of Estee Lauder Companies helps investors to forecast how Estee stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Estee Lauder more accurately as focusing exclusively on Estee Lauder's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Estee Lauder's intrinsic value based on its ongoing forecasts of Estee Lauder's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Estee Lauder's closest peers.
Estee Lauder Cash |
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Estee Valuation Trend
Knowing Estee Lauder's actual value is paramount for traders when making sound investment determinations. Using both Estee Lauder's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Estee Revenue by Product
Estee Lauder Total Value Analysis
Estee Lauder Companies is currently expected to have takeover value of 37.44 B with market capitalization of 29.54 B, debt of 9.83 B, and cash on hands of 4.03 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Estee Lauder fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
37.44 B | 29.54 B | 9.83 B | 4.03 B |
Estee Lauder Investor Information
About 90.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.27. Estee Lauder Companies last dividend was issued on the 29th of November 2024. The entity had 2:1 split on the 23rd of January 2012. Based on the analysis of Estee Lauder's profitability, liquidity, and operating efficiency, Estee Lauder Companies may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.096 | 0.0559 |
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| Total Cash From Operating Activities | 2.8 B | 2.7 B |
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| Operating Income | 1.3 B | 1.1 B |
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Estee Lauder Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Estee Lauder has an asset utilization ratio of 72.0 percent. This suggests that the Company is making $0.72 for each dollar of assets. An increasing asset utilization means that Estee Lauder Companies is more efficient with each dollar of assets it utilizes for everyday operations.Estee Lauder Ownership Allocation
Estee Lauder holds a total of 233.44 Million outstanding shares. The majority of Estee Lauder Companies outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Estee Lauder Companies to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Estee Lauder. Please pay attention to any change in the institutional holdings of Estee Lauder Companies as this could imply that something significant has changed or is about to change at the company. On January 16, 2025, Representative Kevin Hern of US Congress acquired $15k to $50k worth of Estee Lauder Companies's common stock.Estee Lauder Profitability Analysis
The company generated the yearly revenue of 15.61 B. Reported Net Income was 409 M with gross profit of 11.18 B.Estee Lauder Past Distributions to stockholders
About Estee Lauder Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Estee Lauder Companies. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Estee Lauder Companies based exclusively on its fundamental and basic technical indicators. By analyzing Estee Lauder's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Estee Lauder's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Estee Lauder. We calculate exposure to Estee Lauder's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Estee Lauder's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 12.9 B | 7.5 B | |
| Pretax Profit Margin | 0.04 | 0.09 | |
| Operating Profit Margin | 0.06 | 0.10 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.82 | 0.85 |
Estee Lauder Quarterly Retained Earnings |
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A single share of Estee Lauder represents a small ownership stake in the entity. As a stockholder of Estee, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Estee Lauder Dividends Analysis For Valuation
At this time, Estee Lauder's Dividend Yield is quite stable compared to the past year. Dividend Payout Ratio is expected to rise to 2.29 this year, although the value of Dividends Paid is projected to rise to (1 B). . At this time, Estee Lauder's Retained Earnings are quite stable compared to the past year. Price Earnings Ratio is expected to rise to 91.67 this year, although the value of Retained Earnings Total Equity will most likely fall to about 9.6 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -1.1 B | -1 B | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 2.19 | 2.29 | |
| Dividend Paid And Capex Coverage Ratio | 1.14 | 1.38 |
There are various types of dividends Estee Lauder can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Estee shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Estee Lauder Companies directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Estee pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Estee Lauder by the value of the dividends paid out.
Estee Lauder Growth Indicators
Investing in growth stocks can be very risky. If the company such as Estee Lauder does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 360.8 M | |
| Quarterly Earnings Growth Y O Y | 1.116 | |
| Forward Price Earnings | 51.0204 |
Estee Lauder Current Valuation Indicators
Estee Lauder's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Estee Lauder's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Estee Lauder, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Estee Lauder's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Estee Lauder's worth.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Estee Lauder Companies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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 | 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.