The Estee LauderMEX:EL 65 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates MEX:EL with a GF Score™ of 65/100 and a GF Value™ of MXN1,658.12 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,874 Consumer Packaged Goods companies, The Estee Lauder ranks worse than 53361.74% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Estee Lauder's annualized net income for the quarter that ended in Mar. 2026 was MXN6,420 Mil. The Estee Lauder's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN-32,074 Mil. Therefore, The Estee Lauder's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for The Estee Lauder's Return-on-Tangible-Equity or its related term are showing as below:
During the past 13 years, The Estee Lauder's highest Return-on-Tangible-Equity was 127.45%. The lowest was 0.00%. And the median was 84.35%.
MEX:EL's Return-on-Tangible-Equity is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 7.695 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
The Estee Lauder (MEX:EL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Estee Lauder Return-on-Tangible-Equity Related Terms
The Estee Lauder Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Estee Lauder's Return-on-Tangible-Equity 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.
MEX:EL vs CHD, KMB, KVUE: Return-on-Tangible-Equity Comparison
For the Household & Personal Products subindustry, The Estee Lauder's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Estee Lauder's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
The Estee Lauder (MEX:EL) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Estee Lauder and its competitors. According to the industry distribution chart, The Estee Lauder ranks #999999 out of 1874 companies in the Consumer Packaged Goods industry.
Is The Estee Lauder's Return-on-Tangible-Equity too high?
The Estee Lauder's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, The Estee Lauder ranks #999999 out of 1874 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, The Estee Lauder has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Estee Lauder's Return-on-Tangible-Equity compare to CHD and KMB?
According to the Consumer Packaged Goods industry distribution chart, The Estee Lauder ranks #999999 out of 1874 companies for Return-on-Tangible-Equity. This places The Estee Lauder in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.70. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.70, based on 1,874 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Estee Lauder and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Estee Lauder's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Estee Lauder stock overvalued right now?
Based on GuruFocus' analysis, The Estee Lauder (MEX:EL) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,658.12, compared to a current price of MXN1,440.00 — trading 13.2% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. The Estee Lauder's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Estee Lauder (MEX:EL), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Estee Lauder (MEX:EL) Overvalued in 2026?
Based on GuruFocus' analysis, The Estee Lauder stock appears to be undervalued.
The current stock price of MXN1,440.00 is trading 13.2% below its estimated GF Value™ of MXN1,658.12.
GuruFocus considers The Estee Lauder to be Fairly Valued.
No single metric tells the full story. See the MEX:EL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Estée Lauder is a leader in the global prestige beauty market, participating across skin care (49% of fiscal 2025 sales), makeup (29%), fragrance (17%), and hair care and others (5%). Top-selling brands include Estée Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 31% of revenue from the Americas, 37% from Europe, the Middle East and Africa (including travel retail), and 32% from Asia-Pacific. Estée Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
65GF Score
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