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The Estee Lauder (MEX:EL) Owner Earnings per Share (TTM) : 31.53 (As of Mar. 2024)


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What is The Estee Lauder Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

The Estee Lauder's Owner Earnings per Share (TTM) ended in Mar. 2024 was MXN31.53. It's Price-to-Owner-Earnings ratio for today is 56.45.


The historical rank and industry rank for The Estee Lauder's Owner Earnings per Share (TTM) or its related term are showing as below:

MEX:EL' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 20.42   Med: 33.63   Max: 1084.97
Current: 56.45


During the past 13 years, the highest Price-to-Owner-Earnings ratio of The Estee Lauder was 1084.97. The lowest was 20.42. And the median was 33.63.


MEX:EL's Price-to-Owner-Earnings is ranked worse than
87.26% of 926 companies
in the Consumer Packaged Goods industry
Industry Median: 15.055 vs MEX:EL: 56.45

The Estee Lauder's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was MXN15.10. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was MXN30.22. It's PE Ratio ratio for today is 58.89.

The Estee Lauder's EPS without NRI for the three months ended in Mar. 2024 was MXN16.10. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was MXN34.51. It's PE Ratio without NRI ratio for today is 51.58.


The Estee Lauder Owner Earnings per Share (TTM) Historical Data

The historical data trend for The Estee Lauder's Owner Earnings per Share (TTM) 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 Owner Earnings per Share (TTM) Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 92.74 38.83 176.23 101.13 3.11

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
Owner Earnings per Share (TTM) 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 42.99 3.11 13.30 18.63 27.56

Competitive Comparison of The Estee Lauder's Owner Earnings per Share (TTM)

For the Household & Personal Products subindustry, The Estee Lauder's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where The Estee Lauder's Price-to-Owner-Earnings falls into.



The Estee Lauder Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

The Estee Lauder's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 10,764
Depreciation, Depletion and Amortization 13,795
Change In Deferred Tax -4,784
5Y Average of Maintenance Capital Expenditure 21,123
Change In Working Capital 11,524
Shares Outstanding (Diluted Average) 361

1. Start with "Net Income" from income statement. The Estee Lauder's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was MXN10,764 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. The Estee Lauder's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was MXN13,795 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. The Estee Lauder's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was MXN-4,784 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = MXN21,123 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

The Estee Lauder's 5-Year Average Maintenance Capital Expenditure = MXN21,123 Mil

5. "Change In Working Capital" is from cashflow statement. The Estee Lauder's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was MXN11,524 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. The Estee Lauder's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 360.800 Mil.

The Estee Lauder's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 10763.941 +13794.79+-4783.792
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-21122.892416971+11523.546)/360.800
=31.53

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=1780.00/31.53
=56.45

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


The Estee Lauder Owner Earnings per Share (TTM) Related Terms

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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.