# The Estee Lauder Companies Inc. (EL) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Defensive / Household Products. Price $103.86, market value $37.6 billion.

## Valuation
- **P/E (trailing): 207.7×** (5-yr avg 88.9×, 3-yr avg 126.4×). The Estee Lauder Companies Inc. trades at 207.7× trailing earnings, well above its own five-year average of 88.9×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 26.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.23**. A PEG of 0.23 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 9.9×**. The shares trade at 9.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 28.5×**. Enterprise value is 28.5× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.5%** (5-yr avg 2.8%). Free cash flow equals 3.5% of the market value, above its five-year average of 2.8%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 0.5%**. The inverse of the P/E: 0.5% of the price is earned each year.

## Profitability
- **Gross margin: 75.5%**. The Estee Lauder Companies Inc. keeps 75.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 5.2%**. 5.2% of revenue is left after running the business.
- **Net margin: 1.2%**. 1.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.8%**. 4.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 5.5%**. Return on all capital, debt included, is 5.5%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.9%**. Each dollar of assets produces 0.9% of profit.

## Growth
- **Revenue growth (1 yr): 5.0%** (3-yr -1.8%/yr, 5-yr -1.5%/yr). Revenue grew 5.0% over the last year, against -1.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 115.9%** (3-yr -43.6%/yr, 5-yr -42.3%/yr). Earnings per share rose 115.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 21.8%/yr**. Free cash flow has compounded at 21.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.92**. Debt is 1.92 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Current ratio: 1.22** (quick 1.22). Current assets cover the next year's liabilities 1.22 times.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.35%** ($1.40 per share, trailing). The Estee Lauder Companies Inc. yields 1.35%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 279%** (39% of free cash flow). The dividend exceeds earnings (279% payout), though free cash flow still covers it.
- **Dividend growth (5 yr): -1.2%/yr** (1-yr -39.9%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: buy** (26 analysts). 26 analysts cover The Estee Lauder Companies Inc.; the consensus is buy, with an average price target of $106.46 (+3% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 20.0%** (YTD -0.1%, 3-mo 24.4%). The shares are up 20.0% over twelve months including dividends.
- **From 52-week high: -14.6%** (56.8% above the low). Trading 15% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 67**. An RSI of 67 is neutral.
- **Beta (1 yr): 1.41** (volatility 48%). Beta of 1.41 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=EL · Page: https://foliofundamentals.com/stocks/el

Not investment advice.