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The Estee Lauder (MEX:EL) E10 : MXN70.87 (As of Mar. 2024)


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What is The Estee Lauder E10?

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's adjusted earnings per share data for the three months ended in Mar. 2024 was MXN15.103. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN70.87 for the trailing ten years ended in Mar. 2024.

During the past 12 months, The Estee Lauder's average E10 Growth Rate was -0.20% per year. During the past 3 years, the average E10 Growth Rate was 15.00% per year. During the past 5 years, the average E10 Growth Rate was 13.80% per year. During the past 10 years, the average E10 Growth Rate was 13.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of The Estee Lauder was 17.80% per year. The lowest was 5.20% per year. And the median was 13.30% per year.

As of today (2024-07-14), The Estee Lauder's current stock price is MXN1827.00. The Estee Lauder's E10 for the quarter that ended in Mar. 2024 was MXN70.87. The Estee Lauder's Shiller PE Ratio of today is 25.78.

During the past 13 years, the highest Shiller PE Ratio of The Estee Lauder was 93.13. The lowest was 22.47. And the median was 49.69.


The Estee Lauder E10 Historical Data

The historical data trend for The Estee Lauder's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Estee Lauder E10 Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.14 68.78 74.63 94.11 79.40

The Estee Lauder Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.14 79.40 77.14 75.68 70.87

Competitive Comparison of The Estee Lauder's E10

For the Household & Personal Products subindustry, The Estee Lauder's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Estee Lauder's Shiller PE Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where The Estee Lauder's Shiller PE Ratio falls into.



The Estee Lauder E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, The Estee Lauder's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=15.103/131.7762*131.7762
=15.103

Current CPI (Mar. 2024) = 131.7762.

The Estee Lauder Quarterly Data

per share eps CPI Adj_EPS
201406 8.560 100.560 11.217
201409 7.922 100.428 10.395
201412 16.667 99.070 22.169
201503 10.824 99.621 14.318
201506 6.276 100.684 8.214
201509 13.856 100.392 18.188
201512 20.462 99.792 27.020
201603 12.222 100.470 16.030
201606 4.623 101.688 5.991
201609 15.275 101.861 19.761
201612 23.710 101.863 30.673
201703 15.063 102.862 19.297
201706 11.026 103.349 14.059
201709 20.689 104.136 26.180
201712 6.481 104.011 8.211
201803 17.986 105.290 22.511
201806 9.628 106.317 11.934
201809 25.065 106.507 31.012
201812 30.434 105.998 37.835
201903 29.291 107.251 35.989
201906 8.260 108.070 10.072
201909 31.785 108.329 38.665
201912 28.667 108.420 34.843
202003 -0.469 108.902 -0.568
202006 -29.545 108.767 -35.795
202009 31.369 109.815 37.642
202012 47.144 109.897 56.530
202103 25.347 111.754 29.888
202106 54.941 114.631 63.158
202109 38.657 115.734 44.015
202112 60.927 117.630 68.254
202203 30.464 121.301 33.095
202206 2.817 125.017 2.969
202209 27.155 125.227 28.575
202212 21.251 125.222 22.363
202303 7.751 127.348 8.021
202306 -1.543 128.729 -1.580
202309 1.568 129.860 1.591
202312 14.768 129.419 15.037
202403 15.103 131.776 15.103

Add all the adjusted EPS together and divide 10 will get our e10.


The Estee Lauder  (MEX:EL) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=1827.00/70.87
=25.78

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of The Estee Lauder was 93.13. The lowest was 22.47. And the median was 49.69.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


The Estee Lauder E10 Related Terms

Thank you for viewing the detailed overview of The Estee Lauder's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


The Estee Lauder (MEX:EL) Business Description

Address
767 Fifth Avenue, New York, NY, USA, 10153
Estee Lauder is a leader in the global prestige beauty market, participating across skin care (56% of 2022 sales), makeup (26%), fragrance (14%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 26% of revenue from the Americas, 43% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.