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The Estee Lauder (The Estee Lauder) PE Ratio : 63.99 (As of Jun. 16, 2024)


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What is The Estee Lauder PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-06-16), The Estee Lauder's share price is $113.90. The Estee Lauder's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $1.78. Therefore, The Estee Lauder's PE Ratio for today is 63.99.

During the past 13 years, The Estee Lauder's highest PE Ratio was 159.34. The lowest was 24.17. And the median was 36.11.

The Estee Lauder's EPS (Diluted) for the three months ended in Mar. 2024 was $0.91. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $1.78.

As of today (2024-06-16), The Estee Lauder's share price is $113.90. The Estee Lauder's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $2.03. Therefore, The Estee Lauder's PE Ratio without NRI ratio for today is 56.11.

During the past 13 years, The Estee Lauder's highest PE Ratio without NRI was 100.75. The lowest was 23.34. And the median was 31.76.

The Estee Lauder's EPS without NRI for the three months ended in Mar. 2024 was $0.97. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $2.03.

During the past 12 months, The Estee Lauder's average EPS without NRI Growth Rate was -46.60% per year. During the past 3 years, the average EPS without NRI Growth Rate was -5.70% per year. During the past 5 years, the average EPS without NRI Growth Rate was 0.10% per year. During the past 10 years, the average EPS without NRI Growth Rate was 7.60% per year.

During the past 13 years, The Estee Lauder's highest 3-Year average EPS without NRI Growth Rate was 43.20% per year. The lowest was -5.70% per year. And the median was 11.55% per year.

The Estee Lauder's EPS (Basic) for the three months ended in Mar. 2024 was $0.92. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2024 was $1.79.

Back to Basics: PE Ratio


The Estee Lauder PE Ratio Historical Data

The historical data trend for The Estee Lauder's PE Ratio 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 PE Ratio Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.99 101.44 40.83 38.88 70.39

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
PE Ratio 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 81.88 70.39 95.10 112.50 86.60

Competitive Comparison of The Estee Lauder's PE Ratio

For the Household & Personal Products subindustry, The Estee Lauder's PE Ratio, along with its competitors' market caps and 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 PE Ratio Distribution in the Consumer Packaged Goods Industry

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

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



The Estee Lauder PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

The Estee Lauder's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=113.90/1.780
=63.99

The Estee Lauder's Share Price of today is $113.90.
The Estee Lauder's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.78.


* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


The Estee Lauder  (NYSE:EL) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


The Estee Lauder PE Ratio Related Terms

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The Estee Lauder (The Estee Lauder) 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.
Executives
Charlene Barshefsky director
Jane Lauder director 767 FIFTH AVENUE, NEW YORK NY 10153
Hudis Jane Hertzmark officer: Group President C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Carl P. Haney officer: EVP-Global R&D C/O ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Jennifer Hyman director 767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Fabrizio Freda officer: President and COO 767 FIFTH AVENUE, NEW YORK NY 10153
De La Faverie Stephane officer: Executive Group President C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Michael O'hare officer: EVP-Global Human Resources 767 FIFTH AVENUE, NEW YORK NY 10153
Wei Sun Christianson director MORGAN STANLEY, TOWER 1, 18 TAIPINGQIAO ST. XICHENG DIST, BEIJING F4 1000032
Barry S Sternlicht director STARWOOD CAPITAL GROUP GLOBAL LP, 1601 WASHINGTON AVENUE, SUITE 800, MIAMI BEACH FL 33139
Angela Wei Dong director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Peter Jueptner officer: President, International
Arturo Nunez director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Ronald S Lauder director, 10 percent owner, officer: Chairman Clinique Labs, Inc. 767 FIFTH AVENUE, NEW YORK NY 10153
John Demsey officer: Group President 767 FIFTH AVENUE, NEW YORK NY 10036