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The Estee Lauder Companies Inc (NYSE:EL)
Shiller P/E Ratio
42.98 (As of Today)

As of today, The Estee Lauder Companies Inc's current share price is $87.24. The Estee Lauder Companies Inc's E10 for the quarter that ended in Mar. 2016 was $2.03. The Estee Lauder Companies Inc's Shiller P/E Ratio for today is 42.98.

EL' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.91   Max: 56.72
Current: 42.9

12.91
56.72

During the past 13 years, The Estee Lauder Companies Inc's highest Shiller P/E Ratio was 56.72. The lowest was 12.91. And the median was 43.78.

EL's Shiller P/E Ratio is ranked lower than
75% of the 251 Companies
in the Global Household & Personal Products industry.

( Industry Median: 27.29 vs. EL: 42.90 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

The Estee Lauder Companies Inc's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.710. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.03 for the trailing ten years ended in Mar. 2016.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

The Estee Lauder Companies Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=87.24/2.03
=42.98

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The Estee Lauder Companies Inc's E10 for the fiscal year that ended in Jun15 is calculated as:

For example, The Estee Lauder Companies Inc's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.71/238.132*238.132
=0.710

Current CPI (Mar. 2016) = 238.132.

The Estee Lauder Companies Inc Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 1.0900.5400.6610.5901.1300.7100.3990.8201.1900.710
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 1.1140.5440.6600.5901.1460.7160.3980.8211.1980.710
201106201109201112201203201206201209201212201303201306201309
per share eps 0.1020.7001.0000.3300.1290.7601.1300.4500.2380.760
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.1080.7351.0550.3430.1340.7821.1720.4600.2430.773
200812200903200906200909200912201003201006201009201012201103
per share eps 0.4000.070-0.0460.3550.6400.1400.0590.4750.8600.310
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.4530.078-0.0510.3910.7060.1530.0640.5180.9340.330
200606200609200612200703200706200709200712200803200806200809
per share eps 0.1040.1350.4950.2250.2240.1000.5700.2300.3040.130
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.1220.1580.5840.2610.2560.1140.6460.2570.3310.141

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The Estee Lauder Companies Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 29.8931.9728.3520.4332.7953.2946.1147.7745.8448.27

The Estee Lauder Companies Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 49.7142.9445.8445.1944.4847.3548.2743.3345.4046.39
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