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The Estee Lauder Companies Inc (NYSE:EL)
Shiller PE Ratio
38.59 (As of Today)

As of today, The Estee Lauder Companies Inc's current share price is $83.75. The Estee Lauder Companies Inc's E10 for the quarter that ended in Dec. 2016 was $2.17. The Estee Lauder Companies Inc's Shiller P/E Ratio for today is 38.59.

EL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.91   Max: 56.23
Current: 38.56

12.91
56.23

During the past 13 years, The Estee Lauder Companies Inc's highest Shiller P/E Ratio was 56.23. The lowest was 12.91. And the median was 44.06.

EL's Shiller PE Ratio is ranked lower than
67% of the 264 Companies
in the Global Household & Personal Products industry.

( Industry Median: 28.43 vs. EL: 38.56 )

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 Dec. 2016 was $1.150. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.17 for the trailing ten years ended in Dec. 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
=83.75/2.17
=38.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

The Estee Lauder Companies Inc's E10 for the fiscal year that ended in Jun16 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=1.15/241.432*241.432
=1.150

Current CPI (Dec. 2016) = 241.432.

The Estee Lauder Companies Inc Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.5901.1300.7100.4000.8201.1900.7100.2500.7901.150
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.5981.1620.7260.4050.8321.2150.7200.2500.7901.150
201203201206201209201212201303201306201309201312201403201406
per share eps 0.3300.1300.7601.1300.4500.2300.7601.0900.5400.660
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.3470.1370.7931.1880.4670.2380.7841.1290.5520.669
200909200912201003201006201009201012201103201106201109201112
per share eps 0.3550.6400.1400.0550.4750.8600.3100.1000.7001.000
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.3970.7160.1550.0610.5250.9470.3350.1070.7451.070
200703200706200709200712200803200806200809200812200903200906
per share eps 0.2250.2250.1000.5700.2300.3000.1300.4000.070-0.045
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 0.2650.2610.1160.6550.2600.3310.1430.4590.079-0.050

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 local exchange's currency.

The Estee Lauder Companies Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ShillerPE 31.8328.0120.3532.6753.1945.8547.5445.6548.0844.34

The Estee Lauder Companies Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 45.0144.7247.1648.0843.1745.2446.6844.3441.8635.23
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