e.l.f. Beauty (ELF): Exploring Valuation After Strong Earnings, Rhode Deal, and Global Expansion Moves

e.l.f. Beauty (ELF) has been stealing the spotlight lately, and it is not just skincare fans taking notice. The company’s latest quarterly results came in ahead of expectations for both sales and earnings, a reassuring signal for anyone tracking performance. At the same time, e.l.f. Beauty has taken strategic steps to broaden its global footprint, most notably through the acquisition of Rhode and its new partnership as the official sponsor for Tottenham Hotspur Women. Adding in some standout analyst attention and a wave of internal AI innovation, there is a lineup of moves that really puts the company under the magnifying glass for investors. Looking at the stock’s journey, e.l.f. Beauty has racked up a 16% gain over the past year and nearly 10% this year alone, easily outpacing much of its sector. Over three and five years, those returns become even more striking, hinting at real growth potential. While the latest news about international expansion and tech adoption continues to build momentum, the market’s optimism is clear but comes with some big expectations. So here is the big question: with shares riding the wave of strong news and elevated confidence, is e.l.f. Beauty still an opportunity, or is the market already pricing in every bit of future growth?

Most Popular Narrative: 3.2% Undervalued

According to the most widely followed outlook, e.l.f. Beauty is seen as modestly undervalued, with the current price slightly below the consensus fair value. Analyst forecasts converge on a narrow gap, indicating expectations are high and the company is considered almost fairly priced.

The expansion into new international markets and rapid growth in existing ones, such as 30% international net sales growth, top rankings in new geographies, and a global Sephora rollout, provide significant runway for future revenue growth and increased diversification. This potential is likely under-appreciated by the market.

Curious about the foundation for this ambitious price tag? This narrative is built on projections of rapid expansion, bigger profit margins, and a future profit multiple that might surprise you. Want the full breakdown of the aggressive targets and underlying growth bets that could propel e.l.f. Beauty’s value even higher? Explore the narrative’s hidden assumptions and see what could be fueling this just-out-of-reach fair value.

Result: Fair Value of $139.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still uncertainties around tariff exposure and sustained competitive pressure, which could challenge e.l.f. Beauty’s current growth trajectory.

Find out about the key risks to this e.l.f. Beauty narrative.

Another View: Is the Price Too High?

Taking a different approach, a simple comparison to the wider industry suggests e.l.f. Beauty is priced much higher than its peers. This raises the question: is the market overlooking something, or just getting too excited?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding e.l.f. Beauty to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own e.l.f. Beauty Narrative

If you are inclined to dig deeper or have a different perspective on e.l.f. Beauty, you can easily explore the data and build a unique view in just a few minutes. Do it your way.

A great starting point for your e.l.f. Beauty research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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