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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
The Estee Lauder's Sloan Ratio for the quarter that ended in Mar. 2026 was -7.95%.
As of Mar. 2026, The Estee Lauder has a Sloan Ratio of -7.95%, indicating the company is in the safe zone and there is no funny business with accruals.
The Estee Lauder (XSWX:EL) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, The Estee Lauder has a Sloan Ratio of -7.95%, indicating the company is in the safe zone and there is no funny business with accruals.
The Estee Lauder Sloan Ratio % Related Terms
The Estee Lauder Sloan Ratio % Historical Data
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The historical data trend for The Estee Lauder's Sloan 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.
XSWX:EL vs CHD, KMB, KVUE: Sloan Ratio % Comparison
For the Household & Personal Products subindustry, The Estee Lauder's Sloan Ratio %, along with its competitors' market caps and Sloan 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 Sloan Ratio % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Estee Lauder's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
The Estee Lauder's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
The Estee Lauder's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -444.007 (Jun. 2025 ) + 37.417 (Sep. 2025 ) + 129.098 (Dec. 2025 ) + 70.07 (Mar. 2026 ) = CHF-207 Mil.
The Estee Lauder's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 488.733 (Jun. 2025 ) + -270.674 (Sep. 2025 ) + 896.513 (Dec. 2025 ) + 324.368 (Mar. 2026 ) = CHF1,439 Mil.
The Estee Lauder's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -174.838 (Jun. 2025 ) + -92.348 (Sep. 2025 ) + -73.315 (Dec. 2025 ) + -75.581 (Mar. 2026 ) = CHF-416 Mil.
* 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.
The Estee Lauder (XSWX:EL) has a Sloan Ratio % of -7.95% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Estee Lauder and its competitors.
Is The Estee Lauder's Sloan Ratio % too high?
The Estee Lauder's current Sloan Ratio % is -7.95%. Overall, The Estee Lauder has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does The Estee Lauder's Sloan Ratio % compare to CHD and KMB?
The Estee Lauder's Sloan Ratio % of -7.95% can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Consumer Packaged Goods company?
A good Sloan Ratio % depends on the Consumer Packaged Goods industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Estee Lauder and its competitors. The Estee Lauder's current Sloan Ratio % is -7.95%. 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?
The Estee Lauder (XSWX:EL) has a current Sloan Ratio % of -7.95%. The stock's GF Value™ is CHF78.72, compared to a current price of CHF65.13 — trading 17.3% below its estimated fair value. The current Sloan Ratio % is -7.95%. The Estee Lauder's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For The Estee Lauder (XSWX:EL), the current Sloan Ratio % is -7.95% 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 (XSWX:EL) Overvalued in 2026?
Based on GuruFocus' analysis, The Estee Lauder stock appears to be undervalued.
The current stock price of CHF65.13 is trading 17.3% below its estimated GF Value™ of CHF78.72.
Key valuation signals for XSWX:EL:
Sloan Ratio %: -7.95%
GF Value™: CHF78.72 vs. price of CHF65.13 (17.3% below fair value)
No single metric tells the full story. See the XSWX: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.
76GF Score
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