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Estee Lauder Cos Inc (NYSE:EL)
Shiller P/E Ratio
39.30 (As of Today)

As of today, Estee Lauder Cos Inc's current share price is $74.93. Estee Lauder Cos Inc's E10 for the quarter that ended in Mar. 2014 was $1.90. Estee Lauder Cos Inc's Shiller P/E Ratio for today is 39.30.

EL' s 10-Year Shiller P/E Ratio Range
Min: 11.35   Max: 48.34
Current: 39.3

11.35
48.34

During the past 13 years, Estee Lauder Cos Inc's highest Shiller P/E Ratio was 48.34. The lowest was 11.35. And the median was 33.38.

EL's Shiller P/E Ratiois ranked higher than
81% of the 1582 Companies
in the Global Household & Personal Products industry.

( Industry Median: 9999.00 vs. EL: 39.30 )

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.

Estee Lauder Cos Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was $0.546. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $1.90 for the trailing six years ended in Mar. 2014.


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.

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

Shiller P/E Ratio=Share Price/E10
=74.93/1.90
=39.44

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

Estee Lauder Cos Inc's E10 for the fiscal year that ended in Jun13 is calculated as:

For example, Estee Lauder Cos Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.54/236.293*238.786
=0.546

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.786.

Estee Lauder Cos Inc Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 1.0000.3300.1290.7601.1300.4500.2380.7601.0900.540
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 1.0580.3440.1340.7841.1750.4620.2430.7751.1170.546
200906200909200912201003201006201009201012201103201106201109
per share eps -0.0460.3550.6400.1400.0590.4750.8600.3100.1020.700
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS -0.0510.3930.7080.1540.0650.5190.9370.3310.1080.737
200806200809200812200903
per share eps 0.3040.1300.4000.070
CPI 218.815218.783210.228212.709
Adj_EPS 0.3320.1420.4540.079

Add all the adjusted EPS together and divide 6 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.

Estee Lauder Cos Inc Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ShillerPE 40.2829.3428.8230.5924.6818.2629.0046.8838.6839.72

Estee Lauder Cos Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 41.8044.3238.6840.6737.5638.9939.7239.6340.9535.11
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