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The Estee Lauder (MEX:EL) PS Ratio : 2.46 (As of Jul. 22, 2024)


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What is The Estee Lauder PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, The Estee Lauder's share price is MXN1784.00. The Estee Lauder's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was MXN724.42. Hence, The Estee Lauder's PS Ratio for today is 2.46.

Good Sign:

The Estee Lauder Companies Inc stock PS Ratio (=2.33) is close to 10-year low of 2.33

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

MEX:EL' s PS Ratio Range Over the Past 10 Years
Min: 2.33   Med: 3.71   Max: 7.91
Current: 2.33

During the past 13 years, The Estee Lauder's highest PS Ratio was 7.91. The lowest was 2.33. And the median was 3.71.

MEX:EL's PS Ratio is ranked worse than
77.05% of 1878 companies
in the Consumer Packaged Goods industry
Industry Median: 0.94 vs MEX:EL: 2.33

The Estee Lauder's Revenue per Sharefor the three months ended in Mar. 2024 was MXN181.23. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was MXN724.42.

Warning Sign:

The Estee Lauder Companies Inc revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of The Estee Lauder was -3.10% per year. During the past 3 years, the average Revenue per Share Growth Rate was 4.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 4.80% per year. During the past 10 years, the average Revenue per Share Growth Rate was 6.60% per year.

During the past 13 years, The Estee Lauder's highest 3-Year average Revenue per Share Growth Rate was 13.50% per year. The lowest was -3.70% per year. And the median was 7.35% per year.

Back to Basics: PS Ratio


The Estee Lauder PS Ratio Historical Data

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

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.56 4.84 7.22 5.24 4.45

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
PS 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 5.61 4.45 3.36 3.48 3.62

Competitive Comparison of The Estee Lauder's PS Ratio

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

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

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



The Estee Lauder PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

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

PS Ratio=Share Price/Revenue per Share (TTM)
=1784.00/724.416
=2.46

The Estee Lauder's Share Price of today is MXN1784.00.
The Estee Lauder's Revenue per Share 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 MXN724.42.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


The Estee Lauder  (MEX:EL) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS 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

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


The Estee Lauder PS Ratio 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.