The Estée Lauder Companies Inc. (EL) Fair Value & PE Analysis
Household & Personal Products · NYSE
Current Price
$84.13
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Brand Equity and Prestige
Estée Lauder's portfolio of luxury brands commands significant consumer loyalty and pricing power. This allows for premium pricing and sustained demand.
↑Global Distribution Network
Extensive global reach across prestige retailers and online channels creates high barriers to entry. This network facilitates broad market penetration and consumer access.
↑Product Innovation and R&D
Continuous investment in research and development fuels a pipeline of innovative products. This keeps the company relevant and appealing to evolving consumer preferences.
INVESTMENT RISKS
↓Geopolitical Instability
Global conflicts and supply chain disruptions can impact raw material costs and distribution. This can lead to increased operational expenses and reduced profitability.
↓Economic Downturns
Luxury goods are discretionary, making Estée Lauder vulnerable to recessions. Reduced consumer spending power can significantly impact sales of premium beauty products.
↓Regulatory Scrutiny
Increasing regulations around ingredients, labeling, and marketing in the beauty industry pose compliance challenges. This can lead to product reformulation costs and market access issues.
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)
n/m
PEG Ratio
14.97
Earnings Yield
-0.81%
ROE (TTM)
-6.3%
Revenue/Share (TTM)
$40.91
Dividend Yield
1.66%
Debt/Equity
2.33x
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 -123.7x combined with a PEG ratio of 14.97 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high 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 (-123.7x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (14.97) 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 14.97, calculated by dividing the PE ratio (-123.7x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.