Assessing Estée Lauder (EL) Valuation After Recent Share Price Momentum And Premium P/S Multiple

Simply Wall St.01-22

AdvertisementWhy Estée Lauder Companies (EL) is on investors’ radar today Estée Lauder Companies (EL) has drawn fresh attention as investors reassess the stock following its recent share price moves, ...

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However, 3 and...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU0690374961.EUR":"FUNDSMITH EQUITY \"R\" (EUR) INC","BK4183":"个人用品","BK4585":"ETF&股票定投概念","BK4548":"巴美列捷福持仓","LU2404859741.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) INC","LU2552382058.USD":"WELLINGTON US BRAND POWER \"A\" (USD) ACC","BK4588":"碎股","LU0690374615.EUR":"FUNDSMITH EQUITY \"R\" (EUR) ACC","BK4558":"双十一","LU2404859667.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4504":"桥水持仓","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","EL":"雅诗兰黛","LU2552382215.SGD":"WELLINGTON US BRAND POWER \"A\" (SGDHDG) ACC"},"translate_title":"根据近期股价势头和溢价市盈率评估雅诗兰黛(EL)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"EL":1.5},"content_text":"AdvertisementWhy Estée Lauder Companies (EL) is on investors’ radar today Estée Lauder Companies (EL) has drawn fresh attention as investors reassess the stock following its recent share price moves, including a gain over the past month and past three months. See our latest analysis for Estée Lauder Companies. At a share price of $114.46, Estée Lauder’s recent 30 day share price return of 5.98% and 90 day share price return of 16.05% sit against a 1 year total shareholder return of 47.78%. However, 3 and 5 year total shareholder returns remain deeply negative, suggesting that recent momentum contrasts with a much weaker longer term experience. If this kind of rebound has you rethinking your watchlist, it could be a good time to widen the lens and look across healthcare stocks as another source of ideas beyond beauty and personal care. With Estée Lauder shares at $114.46 and trading slightly above the average analyst price target and intrinsic value estimate, you have to ask: is there still a buying opportunity here, or is future growth already priced in? Price-to-Sales of 2.9x: Is it justified? At the last close of $114.46, Estée Lauder is flagged as expensive on a P/S of 2.9x, both against peers and against its own estimated fair level. P/S compares the company’s market value to its annual revenue, so a higher ratio means investors are paying more for each dollar of sales. For Estée Lauder, that 2.9x multiple sits above several benchmarks even though the company is currently unprofitable and its revenue is forecast to grow at 4% per year. According to the statements, Estée Lauder’s 2.9x P/S is higher than the peer average of 2.1x and well above the US Personal Products industry average of 0.8x. It is also above an estimated fair P/S of 2.2x, a level the market could potentially move toward if sentiment or growth expectations cool from here. Explore the SWS fair ratio for Estée Lauder Companies Result: Price-to-Sales of 2.9x (OVERVALUED) However, you still face clear risks here, including the current net loss of $930.0m and the possibility that elevated P/S expectations may be difficult to support. Find out about the key risks to this Estée Lauder Companies narrative. Another way to look at value Our DCF model points in the same direction as the P/S check. At $114.46, Estée Lauder sits above our future cash flow value estimate of $109.48, which suggests the shares are trading at a premium. The open question for you is whether that gap feels comfortable or tight. Look into how the SWS DCF model arrives at its fair value. EL Discounted Cash Flow as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Estée Lauder Companies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 878 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own Estée Lauder Companies Narrative If you see the numbers differently or want to stress test your own view using the same data, you can build a full narrative in just a few minutes, starting with Do it your way. A great starting point for your Estée Lauder Companies research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If Estée Lauder is on your radar, do not stop there, use the Simply Wall St Screener to spot other opportunities that might fit your style.  Boost your watchlist with these 878 undervalued stocks based on cash flows that the market may be pricing cautiously compared to their cash flow potential. Spot what is next in tech by scanning these 23 AI penny stocks that are tied to artificial intelligence themes and applications. Strengthen your income focus by checking out these 13 dividend stocks with yields > 3% that can add yield to a total return approach.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Estée Lauder Companies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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