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The Estee Lauder PE Ratio

: 41.77 (As of Today)
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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 (2021-10-28), The Estee Lauder's share price is $325.37. The Estee Lauder's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $7.79. Therefore, The Estee Lauder's PE Ratio for today is 41.77.

Good Sign:

The Estee Lauder Companies Inc stock PE Ratio (=41.77) is close to 1-year low of 37.98


The historical rank and industry rank for The Estee Lauder's PE Ratio or its related term are showing as below:

NYSE:EL' s PE Ratio Range Over the Past 10 Years
Min: 22.29   Med: 29.34   Max: 155.55
Current: 41.77

22.29
155.55

During the past 13 years, the highest PE Ratio of The Estee Lauder was 155.55. The lowest was 22.29. And the median was 29.34.


NYSE:EL's PE Ratio is ranked lower than
56% of the 118 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 18.75 vs. NYSE:EL: 41.77 )

The Estee Lauder's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $2.76. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $7.79.

As of today (2021-10-28), The Estee Lauder's share price is $325.37. The Estee Lauder's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $7.79. Therefore, The Estee Lauder's PE Ratio without NRI for today is 41.77.

During the past 13 years, The Estee Lauder's highest PE Ratio without NRI was 155.55. The lowest was 22.29. And the median was 29.34.

The Estee Lauder's EPS without NRI for the three months ended in Jun. 2021 was $2.76. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $7.79.

During the past 12 months, The Estee Lauder's average EPS without NRI Growth Rate was 318.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 38.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 10.70% per year. During the past 10 years, the average EPS without NRI Growth Rate was 8.40% per year.

During the past 13 years, The Estee Lauder's highest 3-Year average EPS without NRI Growth Rate was 57.80% per year. The lowest was -17.80% per year. And the median was 9.80% per year.

The Estee Lauder's EPS (Basic) for the three months ended in Jun. 2021 was $2.81. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $7.90.


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 Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.65 48.37 37.99 101.44 40.83

The Estee Lauder Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 101.44 133.08 106.90 77.56 40.83

Competitive Comparison

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 PE Ratio Distribution

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)
=325.37/7.790
=41.77

The Estee Lauder's Share Price of today is $325.37.
The Estee Lauder's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.79.

* 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 or PE Ratio (TTM), 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

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


The Estee Lauder Business Description

The Estee Lauder logo
Industry
Address
767 Fifth Avenue, New York, NY, USA, 10153
Estee Lauder is the world leader in the global prestige beauty market, participating across skincare (52% of 2020 sales), makeup (33%), fragrance (11%), and haircare (4%) categories, with popular brands such as Estee Lauder, Clinique, MAC, La Mer, Jo Malone, Aveda, Bobbi Brown, Too Faced, and Origins. The firm operates in 150 countries, with 26% of revenue stemming from the Americas, 44% from Europe, the Middle East and Africa, and 30% from Asia-Pacific. The company sells its products through department stores, travel retail, multibrand specialty beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
Executives
Barshefsky Charlene director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BARSHEFSKY CHARLENE a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Hyman Jennifer director 767 FIFTH AVENUE C/O THE ESTEE LAUDER COMPANIES INC. NEW YORK NY 10153
Tejada Jennifer director 767 FIFTH AVENUE C/O THE ESTEE LAUDER COMPANIES INC. NEW YORK NY 10153
Christianson Wei Sun director MORGAN STANLEY TOWER 1, 18 TAIPINGQIAO ST. XICHENG DIST BEIJING F4 1000032
Zannino Richard F director C/O IAC/INTERACTIVECORP 555 WEST 18TH STREET NEW YORK NY 10011
Bravo Rose Marie director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BRAVO ROSE MARIE a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Hockaday Irvine O Jr director SPRINT NEXTEL CORPORATION 2001 EDMUND HALLEY DRIVE RESTON VA 20191
Fribourg Paul J director 667 MADISON AVE NEW YORK NY 10021
Forester Lynn director C/O ESTEE LAUDER COMPANIES INC 767 FIFTH AVENUE NEW YORK NY 10153
Sternlicht Barry S director STARWOOD CAPITAL GROUP GLOBAL LP 1601 WASHINGTON AVENUE, SUITE 800 MIAMI BEACH FL 33139
Parsons Richard D director TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019
Prouve Cedric officer: Group President, International ESTEE LAUDER COS INC 767 FIFTH AVE NEW YORK NY 10153
Haney Carl P. officer: EVP-Global R&D C/O ESTEE LAUDER COMPANIES INC. 767 FIFTH AVENUE NEW YORK NY 10153
Stanley Deirdre officer: EVP & General Counsel 4 IRVING PLACE ROOM 16-205 NEW YORK NY 10003
Hertzmark Hudis Jane officer: Group President C/O THE ESTEE LAUDER COMPANIES INC. 767 FIFTH AVENUE NEW YORK NY 10153

The Estee Lauder Headlines

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