The Estée Lauder Companies Inc. (EL) Fair Value & PE Analysis
Household & Personal Products · NYSE
Current Price
$89.68
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Brand Equity & Prestige
Estée Lauder commands strong brand loyalty and aspirational appeal across its portfolio. This allows for premium pricing and sustained demand for its luxury and prestige products.
↑Global Distribution Network
The company possesses an extensive and well-established global distribution network. This provides significant reach and access to diverse consumer markets worldwide.
↑Innovation & R&D Investment
Consistent investment in research and development fuels product innovation and the creation of new, desirable formulations. This keeps their offerings competitive and appealing to evolving consumer preferences.
INVESTMENT RISKS
↓Intense Competition
The beauty industry is highly fragmented and intensely competitive, with numerous players vying for market share. This can pressure margins and require continuous marketing spend.
↓Changing Consumer Preferences
Consumer tastes and trends in beauty can shift rapidly, influenced by social media and emerging brands. Estée Lauder must adapt quickly to maintain relevance and avoid product obsolescence.
↓Supply Chain Vulnerabilities
Global supply chain disruptions, geopolitical events, or raw material shortages can impact production and delivery. The recent mention of manufacturing network strengthening suggests a focus on mitigating these risks.
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
15.87
Earnings Yield
-0.76%
ROE (TTM)
-6.3%
Revenue/Share (TTM)
$40.91
Dividend Yield
1.56%
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 -131.2x combined with a PEG ratio of 15.87 provides a growth-adjusted perspective. A PEG above 2.0 suggests EL may be richly valued even accounting for growth. 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 (-131.2x) against the Household & Personal Products median to assess relative pricing, (2) check the PEG ratio (15.87) 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 15.87, calculated by dividing the PE ratio (-131.2x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.