The Estée Lauder Companies Inc. (EL) Fair Value & PE Analysis
Household & Personal Products · NYSE
Current Price
$101.94
PE Ratio (TTM)
203.9x
Intrinsic Value
Outside reliable range
What Is The Estée Lauder Companies Inc.'s Fair Value?
The PE model output for The Estée Lauder Companies Inc. (EL) falls outside its reliable range, often because earnings are unusually low, negative, or volatile. Treat any single fair value number with extra caution here.
How the PE model works · Recalculate in PE mode · EL intrinsic value (DCF view)
Is The Estée Lauder Companies Inc. (EL) Overvalued?
Because the model output for EL is outside the reliable range, no overvalued or undervalued read is given here. Use the PE calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Brand Equity and Prestige
Estée Lauder commands strong brand loyalty and perceived luxury across its portfolio. This allows for premium pricing and sustained demand for its high-end products.
↑Global Distribution Network
Extensive reach through department stores, specialty retailers, and e-commerce globally. This wide distribution ensures product accessibility and market penetration.
↑Innovation and R&D Investment
Continuous investment in research and development fuels product innovation. This leads to a pipeline of new, desirable products that capture consumer interest.
INVESTMENT RISKS
↓Geopolitical and Economic Volatility
Global operations expose EL to currency fluctuations, trade disputes, and economic downturns. These factors can impact sales and profitability in key markets.
↓Intense Competition in Beauty
The beauty industry is highly fragmented with numerous global and local competitors. This necessitates constant innovation and marketing to maintain market position.
↓Supply Chain Disruptions
Reliance on global supply chains makes EL vulnerable to disruptions from natural disasters or geopolitical events. This can affect product availability and costs.
Base case
EL base case PE valuation
Base case assumptions: 4.4% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Estée Lauder Companies Inc. respond.
Open PE Calculator for ELCompany Overview
The Estée Lauder Companies Inc. is a global entity dedicated to the development, marketing, and sale of a diverse range of premium beauty and personal care items worldwide. Its extensive product catalog encompasses numerous offerings across four primary categories. For skin care, it provides moisturizers, serums, cleansers, toners, body treatments, exfoliants, acne and oil control solutions, facial masks, specialized cleansing devices, and sun protection. In makeup, consumers can find lipsticks, glosses, mascaras, foundations, eyeshadows, nail polishes, powders, compacts, brushes, and various other cosmetic tools. The fragrance segment includes eau de parfum sprays, colognes, scented lotions, powders, creams, candles, and soaps. Lastly, its hair care selection features shampoos, conditioners, styling aids, treatments, finishing sprays, and hair color products. Beyond these, the company also offers ancillary products and services. Estée Lauder boasts an impressive portfolio of owned brands, such as Clinique, M·A·C, Aveda, La Mer, Jo Malone London, and The Ordinary, among many others. Furthermore, it operates under license agreements for notable fashion labels including Tommy Hilfiger and Michael Kors. These products are distributed globally through a broad network of retail channels, comprising high-end department stores, specialty multi-brand retailers, luxury perfumeries and pharmacies, salons and spas, exclusive freestanding stores, its own and authorized online platforms, major third-party e-commerce sites, airport retail locations, and in-flight and duty-free concessions. Established in 1946, the company maintains its corporate headquarters in New York, New York.
Financial Metrics — EL PE Stock Valuation Data
PE Ratio (TTM)
203.9x
PEG Ratio
0.79
Earnings Yield
0.49%
ROE (TTM)
4.6%
Revenue/Share (TTM)
$41.54
Dividend Yield
1.37%
Debt/Equity
2.43x
Frequently Asked Questions
What is the PE ratio of EL?
The trailing twelve-month PE ratio of EL reflects how much investors pay per dollar of The Estée Lauder Companies Inc.'s earnings. This metric is most useful when compared to Household & Personal Products peers and the company's own historical range.
Is EL overvalued based on PE ratio?
EL's PE of 203.9x combined with a PEG ratio of 0.79 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Household & Personal Products, a DCF analysis may be more appropriate.
How do I value EL stock using PE ratio?
To value The Estée Lauder Companies Inc. using PE: (1) Compare the current PE (203.9x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (0.79) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of EL?
EL's PEG ratio is 0.79, calculated by dividing the PE ratio (203.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EL stock valuation?
PE ratio gives a quick relative read — how EL is priced versus Household & Personal Products peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See EL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value EL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.