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The Estée Lauder Companies Inc. — Intrinsic Value & Fair Price

EL
NYSEConsumer DefensiveHousehold & Personal ProductsCIK 0001001250elcompanies.comAbout EL
Last close · Oct 16, 2026104.54−2.65 (−2.47%)
Market cap$37.9B
Model value · DCF · Perpetuity growth · 5y
5.71
Estée Lauder closed at $104.54 — overvalued by 1731% vs model.
0.76the model's range21.16

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
8.61 – 91.56
Wall St. target
106.00 1% below
Above model, 1y
21 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.34%
Past 2 years
low 1.17%high 4.21%
Dividends per share, a year at a time
$2.12Aug ’21$2.40Aug ’22$2.64Aug ’23$2.64Aug ’24$1.40Sep ’25$1.40TTM
Dividends / free cash flow, FY2026
38.6%
Raised
—
Growth, 5 yrs
-8.0% a year
Last change
−47.0% · Nov 2024
Every payment, with ex-dates · latest $0.35, paid Sep 15, 2026

Research on EL

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How it is valued

Valued asMature & Stable
Revenue declining (~-2% recent)Thin margins (1.2% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2026
P/E
209×
EV / EBITDA
49.0×
FCF yield
3.5%
Dividend yield, TTM
1.34%
Beta
1.27
Cost of capital (WACC)
8.81%
Full financials

Analyst actions

third-party, quoted
10-16Bernstein · target114.00
10-05Barclays · “Overweight” from “Equal Weight”upgrade
10-05Barclays · target108.00
08-25Berenberg Bank · target92.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists EL as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just EL. No account.

About Estée Lauder

The Estée Lauder Companies Inc. is a global entity dedicated to the development, marketing, and sale of a diverse range of premium beauty and personal care items worldwide. Its extensive product catalog encompasses numerous offerings across four primary categories. For skin care, it provides moisturizers, serums, cleansers, toners, body treatments, exfoliants, acne and oil control solutions, facial masks, specialized cleansing devices, and sun protection. In makeup, consumers can find lipsticks, glosses, mascaras, foundations, eyeshadows, nail polishes, powders, compacts, brushes, and various other cosmetic tools. The fragrance segment includes eau de parfum sprays, colognes, scented lotions, powders, creams, candles, and soaps. Lastly, its hair care selection features shampoos, conditioners, styling aids, treatments, finishing sprays, and hair color products. Beyond these, the company also offers ancillary products and services. Estée Lauder boasts an impressive portfolio of owned brands, such as Clinique, M·A·C, Aveda, La Mer, Jo Malone London, and The Ordinary, among many others. Furthermore, it operates under license agreements for notable fashion labels including Tommy Hilfiger and Michael Kors. These products are distributed globally through a broad network of retail channels, comprising high-end department stores, specialty multi-brand retailers, luxury perfumeries and pharmacies, salons and spas, exclusive freestanding stores, its own and authorized online platforms, major third-party e-commerce sites, airport retail locations, and in-flight and duty-free concessions. Established in 1946, the company maintains its corporate headquarters in New York, New York.

CEO
Stephane de la Faverie
Headquarters
New York City, NY
Employees
41,800
IPO
1995-11-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.