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EL: Digital Expansion And Luxury Fragrance Initiatives Will Support Balanced Future Performance

Luxury Expansion And Profit Margins Will Shape Long-Term Global Opportunities

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EL
AnalystConsensusTarget
Not Invested
Published 20 Aug 2024

Update shared on 06 Dec 2025

Fair value Increased 0.30%
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Analysts have nudged their price target on Estée Lauder Companies slightly higher to approximately $102.17 per share from about $101.87, citing a modestly lower discount rate and slightly stronger long term revenue growth expectations, which more than offset a marginal trim to projected profit margins.

What's in the News

  • Launched the Jo Malone London AI Scent Advisor, using Google's Gemini and Vertex AI to deliver personalized online fragrance recommendations and extend the brand's in store style consultation into digital channels (company announcement).
  • Opened La Maison des Parfums and the Fragrance Atelier in Paris as a global innovation hub to accelerate growth in luxury and prestige fragrances and deepen the company's long standing presence in France (company announcement).
  • Entered a first of its kind omnichannel strategic partnership with Shopify to build a unified digital commerce platform, aiming to improve speed to market and data driven consumer personalization across brands globally (company announcement).
  • Completed a follow on equity offering of 11,301,323 shares of Class A common stock, raising about $1.02 billion at a price of $90 per share with a small per share discount (offering filing).
  • Stockholders approved amendments to the Restated Certificate of Incorporation at the November 13, 2025 Annual Meeting of Stockholders, following earlier proposals disclosed ahead of the AGM (AGM results).

Valuation Changes

  • The fair value estimate has risen slightly to approximately $102.17 per share, up from about $101.87.
  • The discount rate has fallen marginally to around 7.97 percent, down from roughly 8.06 percent.
  • The revenue growth assumption has increased slightly to about 4.18 percent, up from approximately 4.16 percent.
  • The net profit margin forecast has edged down fractionally to roughly 9.23 percent, compared with around 9.23 percent previously.
  • The future P/E multiple has risen very slightly to about 30.88 times, up from roughly 30.86 times.

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Disclaimer

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