The Estee LauderMEX:EL -0.41%61 ROE % is 8.88% as of Mar. 2026, which is 68% below its 10-year median of 27.67. GuruFocus rates MEX:EL with a GF Score™ of 61/100 and a GF Value™ of MXN1,559.73 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,916 Consumer Packaged Goods companies, The Estee Lauder ranks worse than 83.3% on this metric.
The historical rank and industry rank for The Estee Lauder's ROE % or its related term are showing as below:
MEX:EL'
s ROE % Range Over the Past 10 Years
Min: -24.69 Med: 27.67 Max: 57.45
Current: -6.16
During the past 13 years, The Estee Lauder's highest ROE % was 57.45%. The lowest was -24.69%. And the median was 27.67%.
MEX:EL's ROE % is ranked worse than 83.3% of 1916
companies
in the Consumer Packaged Goods industry
Industry Median: 6.735
vs MEX:EL: -6.16
The Estee Lauder (MEX:EL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
The Estee Lauder ROE % Related Terms
The Estee Lauder ROE % Historical Data
* Premium members only.
The historical data trend for The Estee Lauder's ROE % 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.
For the Household & Personal Products subindustry, The Estee Lauder's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's ROE % distribution charts can be found below:
* The bar in red indicates where The Estee Lauder's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
The Estee Lauder (MEX:EL) has a ROE % of 8.88% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Estee Lauder and its competitors. This is 68% below median its historical median of 27.67. According to the industry distribution chart, The Estee Lauder ranks #1596 out of 1916 companies in the Consumer Packaged Goods industry, placing it in the top 83.3%.
Is The Estee Lauder's ROE % too high?
The Estee Lauder's current ROE % of 8.88% is 68% below median its 10-year median of 27.67. The Consumer Packaged Goods industry median ROE % is 6.74. The Estee Lauder's value of 8.88% is 31.8% above this industry median. Based on the distribution chart, The Estee Lauder ranks #1596 out of 1916 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 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Estee Lauder's ROE % compare to KMB and KVUE?
According to the Consumer Packaged Goods industry distribution chart, The Estee Lauder ranks #1596 out of 1916 companies for ROE %. This places The Estee Lauder in the lower half of its industry. The industry median ROE % is 6.74. The Estee Lauder's value of 8.88% is 31.8% above this benchmark. While the company's 10-year median is 27.67 vs. the industry median of 6.74, The Estee Lauder has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.74, based on 1,916 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Estee Lauder's current ROE % of 8.88% is 31.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Estee Lauder and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Estee Lauder's current ROE % is 8.88%, which is 68% below median its own 10-year median of 27.67. 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 MXN1,559.73, compared to a current price of MXN1,470.00 — trading 5.8% below its estimated fair value. The current ROE % is 8.88%, which is 68% below median its 10-year median of 27.67 and 31.8% above the Consumer Packaged Goods industry median of 6.74. The Estee Lauder's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For The Estee Lauder (MEX:EL), the current ROE % is 8.88% 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 MXN1,470.00 is trading 5.8% below its estimated GF Value™ of MXN1,559.73.
GuruFocus considers The Estee Lauder to be Fairly Valued.
Key valuation signals for MEX:EL:
ROE %: 8.88% (68% below median its 10-year median of 27.67)
GF Value™: MXN1,559.73 vs. price of MXN1,470.00 (5.8% below fair value)
Industry Position: 31.8% above the Consumer Packaged Goods median (#1596 of 1916)
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.
61GF Score
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