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The Estee Lauder (MEX:EL) PE Ratio (TTM) : 59.03 (As of Jul. 23, 2024)


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What is The Estee Lauder PE Ratio (TTM)?

The PE Ratio (TTM), 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 (2024-07-23), The Estee Lauder's share price is MXN1784.00. The Estee Lauder's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was MXN30.22. Therefore, The Estee Lauder's PE Ratio (TTM) for today is 59.03.

Good Sign:

The Estee Lauder Companies Inc stock PE Ratio (=56.76) is close to 1-year low of 52


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

MEX:EL' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 24.17   Med: 36.45   Max: 159.34
Current: 56.76


During the past 13 years, the highest PE Ratio (TTM) of The Estee Lauder was 159.34. The lowest was 24.17. And the median was 36.45.


MEX:EL's PE Ratio (TTM) is ranked worse than
85.76% of 1376 companies
in the Consumer Packaged Goods industry
Industry Median: 18.33 vs MEX:EL: 56.76

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.

As of today (2024-07-23), The Estee Lauder's share price is MXN1784.00. The Estee Lauder's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was MXN34.51. Therefore, The Estee Lauder's PE Ratio without NRI for today is 51.70.

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 32.19.

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.

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 MXN15.27. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2024 was MXN30.06.


The Estee Lauder PE Ratio (TTM) Historical Data

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

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PE Ratio (TTM)
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 (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 81.88 70.39 95.10 112.50 86.60

Competitive Comparison of The Estee Lauder's PE Ratio (TTM)

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

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

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



The Estee Lauder PE Ratio (TTM) Calculation

The PE Ratio (TTM), 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 (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=1784.00/30.224
=59.03

The Estee Lauder's Share Price of today is MXN1784.00.
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 MXN30.22.

* 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:

PE Ratio (TTM)=Market Cap /Net Income

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

In the calculation of PE Ratio (TTM), 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  (MEX:EL) PE Ratio (TTM) Explanation

The PE Ratio (TTM) 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 (TTM) 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 (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) 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 (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) 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 (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) 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 (TTM) 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 (TTM) 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 Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) 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 (TTM).


The Estee Lauder PE Ratio (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.