The Estée Lauder Companies Inc. (EL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-91.8%

$8.79

vs $107.46 price

Levered DCF

$25.04

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.31

Safe zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	157.9×	-25.65×	96.68×	69.89×	38.35×	40.21×	99.31×	37.11×
P/B	7.52×	7.53×	7.12×	12.58×	16.4×	19.06×	17.29×	15.1×
P/S	1.9×	2.03×	2.42×	4.42×	5.17×	7.12×	4.76×	4.46×
EV / EBITDA	20.86×	244.12×	22.41×	31.9×	24.27×	28.54×	39.5×	22.24×
Gross margin	75.5%	74.0%	71.7%	71.3%	75.7%	76.4%	75.2%	77.2%
Operating margin	11.1%	8.0%	6.2%	9.5%	17.9%	16.1%	4.2%	15.6%
Net margin	1.2%	-7.9%	2.5%	6.3%	13.5%	17.7%	4.8%	12.0%
Current ratio	1.22×	1.3×	1.39×	1.46×	1.6×	1.84×	1.72×	1.57×
Debt / equity	2.43×	2.45×	1.85×	1.82×	1.37×	1.34×	2.23×	0.78×
Interest coverage	5.02×	2.82×	2.57×	5.92×	18.98×	15.13×	3.76×	17.39×
Dividend yield	1.8%	2.1%	2.5%	1.3%	0.9%	0.7%	0.7%	0.9%
Payout ratio	279.1%	-54.5%	242.8%	91.9%	35.1%	26.2%	73.5%	34.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	4.8%	-29.3%	7.3%	18.0%	42.8%	47.4%	17.4%	40.7%
Return on invested capital	4.1%	7.7%	3.1%	5.9%	16.0%	13.2%	2.8%	19.8%
Return on assets	0.9%	-5.7%	1.8%	4.3%	11.4%	13.1%	3.8%	13.6%
Free cash flow yield	4.6%	2.3%	3.8%	-2.2%	2.2%	2.6%	2.4%	2.7%
Earnings yield	0.6%	-3.9%	1.0%	1.4%	2.6%	2.5%	1.0%	2.7%
Enterprise value	$34.4B	$35.6B	$44.3B	$76.4B	$95.4B	$118.6B	$71.8B	$66.7B
Net debt / EBITDA	3.49×	44.84×	3.26×	2.56×	0.94×	0.76×	2.07×	0.14×
Cash conversion cycle (days)	78	95	101	138	127	116	121	101