Coty Inc. (COTY) Stock Valuation — PE Analysis
Household & Personal Products · NYSE
Current Price
$2.07
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Brand Portfolio Strength
Coty possesses a diverse portfolio of well-established brands across beauty and fragrance. This brand recognition fosters customer loyalty and allows for premium pricing power in certain segments.
↑Distribution Network
The company benefits from extensive global distribution channels, reaching a wide consumer base. This established network is difficult and costly for new entrants to replicate.
↑Scale and Efficiency
Coty's significant scale in manufacturing and supply chain operations can lead to cost efficiencies. This allows for competitive pricing and better margins compared to smaller players.
INVESTMENT RISKS
↓Litigation and Legal Scrutiny
Recent class action lawsuits alleging securities fraud create significant legal and reputational risks. These can lead to substantial financial penalties and damage investor confidence.
↓Market Volatility and Competition
The beauty and personal care market is highly competitive and subject to changing consumer trends. Intense competition can pressure pricing and market share.
↓Earnings Performance Concerns
A significant stock price decline following recent earnings reports indicates potential operational or strategic challenges. This suggests a need for improved financial performance to regain investor trust.
Customize the COTY PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Coty Inc. respond.
Open PE Calculator for COTYCompany Overview
Coty Inc., operating globally with its various subsidiaries, is a prominent beauty enterprise engaged in the creation, promotion, distribution, and retail of diverse beauty products. The company offers an extensive portfolio of high-end items, including luxury fragrances, advanced skincare formulations, and sophisticated color cosmetics. These prestigious offerings are made available to consumers through a variety of upscale retail channels such as specialty perfumeries, renowned department stores, online boutiques, proprietary direct-to-consumer websites, and duty-free shops. Its premium brand collection features names like Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, Kim Kardashian West, and Tiffany & Co. Furthermore, Coty caters to the mass market segment, providing accessible color cosmetics, popular fragrances, essential skincare, and body care products. These items are primarily distributed through major retail outlets such as hypermarkets, supermarkets, drugstores, pharmacies, mid-tier department stores, traditional grocery and pharmacy chains, and various e-commerce platforms. Key brands within this category include Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond. To broaden its international presence, Coty Inc. also utilizes third-party distributors, extending its reach to approximately 150 countries and territories worldwide. The company, established in 1904 and headquartered in New York, New York, functions as a subsidiary of Cottage Holdco B.V.
Financial Metrics — COTY PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.10
Earnings Yield
-29.24%
ROE (TTM)
-15.1%
Revenue/Share (TTM)
$6.58
Debt/Equity
1.15x
Frequently Asked Questions
What is the PE ratio of COTY?
The trailing twelve-month PE ratio of COTY reflects how much investors pay per dollar of Coty Inc.'s earnings. This metric is most useful when compared to Household & Personal Products peers and the company's own historical range.
Is COTY overvalued based on PE ratio?
COTY's PE of -3.4x combined with a PEG ratio of 0.10 provides a growth-adjusted perspective. A PEG below 1.0 suggests COTY may be undervalued relative to its 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 COTY stock using PE ratio?
To value Coty Inc. using PE: (1) Compare the current PE (-3.4x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (0.10) 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 COTY?
COTY's PEG ratio is 0.10, calculated by dividing the PE ratio (-3.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for COTY stock valuation?
PE ratio gives a quick relative read — how COTY 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 COTY 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 COTY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.