The Estée Lauder Companies Inc.

NYSE:EL Stock Report

Market Cap: US$25.7b

Estée Lauder Companies Valuation

Is EL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$71.70
Fair Value
0.5% undervalued intrinsic discount
28
Number of Analysts

Below Fair Value: EL ($71.34) is trading below our estimate of fair value ($71.7)

Significantly Below Fair Value: EL is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EL?

Key metric: As EL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for EL. This is calculated by dividing EL's market cap by their current revenue.
What is EL's PS Ratio?
PS Ratio1.7x
SalesUS$15.18b
Market CapUS$25.68b

Price to Sales Ratio vs Peers

How does EL's PS Ratio compare to its peers?

The above table shows the PS ratio for EL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
KVUE Kenvue
2.8x2.8%US$42.7b
BRBR BellRing Brands
4.5x9.1%US$9.9b
COTY Coty
0.8x2.7%US$4.8b
IPAR Interparfums
3x4.9%US$4.3b
EL Estée Lauder Companies
1.7x2.5%US$25.7b

Price-To-Sales vs Peers: EL is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

How does EL's PS Ratio compare vs other companies in the US Personal Products Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
HLF Herbalife
0.2x2.2%US$568.73m
NUS Nu Skin Enterprises
0.2x-8.4%US$389.33m
MED Medifast
0.3x-15.1%US$152.31m
SUMR Summer Infant
0.2xn/aUS$25.98m
EL 1.7xIndustry Avg. 1.7xNo. of Companies24PS0246810+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: EL is expensive based on its Price-To-Sales Ratio (1.7x) compared to the US Personal Products industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is EL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: EL is good value based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.34
US$76.48
+7.2%
16.2%US$120.00US$61.10n/a28
Feb ’26US$83.43
US$84.71
+1.5%
23.2%US$162.00US$61.10n/a27
Jan ’26US$74.98
US$82.86
+10.5%
24.0%US$162.00US$61.10n/a28
Dec ’25US$72.12
US$81.49
+13.0%
25.1%US$162.00US$61.10n/a27
Nov ’25US$66.58
US$83.63
+25.6%
22.6%US$162.00US$61.10n/a27
Oct ’25US$97.24
US$108.04
+11.1%
17.1%US$176.00US$86.00n/a28
Sep ’25US$91.66
US$117.25
+27.9%
17.1%US$176.00US$86.00n/a26
Aug ’25US$97.12
US$137.21
+41.3%
18.6%US$210.00US$100.00n/a26
Jul ’25US$105.38
US$149.06
+41.4%
14.1%US$210.00US$122.00n/a27
Jun ’25US$123.36
US$153.00
+24.0%
13.4%US$210.00US$130.00n/a26
May ’25US$127.37
US$159.76
+25.4%
12.0%US$210.00US$130.00n/a27
Apr ’25US$152.03
US$160.57
+5.6%
11.5%US$210.00US$131.00n/a27
Mar ’25US$148.83
US$160.69
+8.0%
11.3%US$210.00US$131.00n/a28
Feb ’25US$134.70
US$145.45
+8.0%
16.9%US$208.00US$115.00US$83.4329
Jan ’25US$146.25
US$139.83
-4.4%
19.7%US$208.00US$100.00US$74.9829
Dec ’24US$131.94
US$136.31
+3.3%
21.2%US$208.00US$100.00US$72.1229
Nov ’24US$104.51
US$169.74
+62.4%
20.6%US$249.00US$100.00US$66.5827
Oct ’24US$144.55
US$186.61
+29.1%
13.5%US$249.00US$146.00US$97.2428
Sep ’24US$161.70
US$190.33
+17.7%
14.0%US$249.00US$146.00US$91.6628
Aug ’24US$175.03
US$223.76
+27.8%
10.7%US$265.00US$180.00US$97.1228
Jul ’24US$196.38
US$235.41
+19.9%
10.0%US$270.00US$180.00US$105.3829
Jun ’24US$182.89
US$238.66
+30.5%
8.7%US$270.00US$180.00US$123.3630
May ’24US$246.87
US$284.57
+15.3%
7.8%US$320.00US$210.00US$127.3731
Apr ’24US$246.46
US$285.28
+15.7%
7.8%US$320.00US$210.00US$152.0331
Mar ’24US$245.83
US$284.54
+15.7%
8.5%US$320.00US$210.00US$148.8331
Feb ’24US$280.80
US$269.61
-4.0%
10.1%US$315.00US$210.00US$134.7029
Analyst Price Target
Consensus Narrative from 28 Analysts
US$76.48
Fair Value
6.7% undervalued intrinsic discount
28
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/20 05:01
End of Day Share Price 2025/02/20 00:00
Earnings2024/12/31
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Estée Lauder Companies Inc. is covered by 50 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Victoria CollinAtlantic Equities LLP
Ishan MajumdarBaptista Research