Intrinsic value of Estee Lauder Cl A - EL

Previous Close

$125.47

  Intrinsic Value

$83.95

stock screener

  Rating & Target

sell

-33%

Previous close

$125.47

 
Intrinsic value

$83.95

 
Up/down potential

-33%

 
Rating

sell

We calculate the intrinsic value of EL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 46.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.99
  9.40
  8.96
  8.56
  8.21
  7.89
  7.60
  7.34
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
Revenue, $m
  11,824
  12,935
  14,094
  15,302
  16,557
  17,863
  19,221
  20,631
  22,097
  23,620
  25,204
  26,851
  28,564
  30,347
  32,204
  34,138
  36,154
  38,257
  40,450
  42,740
  45,131
  47,629
  50,240
  52,970
  55,825
  58,812
  61,938
  65,211
  68,638
  72,228
  75,990
Variable operating expenses, $m
 
  11,029
  12,000
  13,011
  14,063
  15,157
  16,294
  17,476
  18,704
  19,980
  21,307
  22,495
  23,931
  25,425
  26,980
  28,601
  30,290
  32,051
  33,889
  35,807
  37,811
  39,903
  42,091
  44,378
  46,770
  49,272
  51,891
  54,634
  57,505
  60,513
  63,664
Fixed operating expenses, $m
 
  35
  36
  37
  38
  38
  39
  40
  41
  42
  44
  45
  46
  47
  48
  49
  50
  52
  53
  54
  56
  57
  59
  60
  61
  63
  65
  66
  68
  70
  71
Total operating expenses, $m
  10,132
  11,064
  12,036
  13,048
  14,101
  15,195
  16,333
  17,516
  18,745
  20,022
  21,351
  22,540
  23,977
  25,472
  27,028
  28,650
  30,340
  32,103
  33,942
  35,861
  37,867
  39,960
  42,150
  44,438
  46,831
  49,335
  51,956
  54,700
  57,573
  60,583
  63,735
Operating income, $m
  1,692
  1,872
  2,059
  2,254
  2,457
  2,667
  2,887
  3,114
  3,351
  3,597
  3,853
  4,311
  4,587
  4,876
  5,176
  5,488
  5,814
  6,154
  6,508
  6,878
  7,265
  7,669
  8,091
  8,532
  8,993
  9,476
  9,982
  10,511
  11,066
  11,646
  12,255
EBITDA, $m
  2,156
  2,373
  2,587
  2,811
  3,044
  3,286
  3,538
  3,799
  4,071
  4,354
  4,647
  4,953
  5,270
  5,601
  5,945
  6,304
  6,678
  7,068
  7,475
  7,900
  8,344
  8,807
  9,292
  9,798
  10,328
  10,883
  11,463
  12,070
  12,707
  13,373
  14,071
Interest expense (income), $m
  96
  118
  142
  166
  191
  217
  244
  272
  301
  331
  363
  396
  430
  465
  502
  541
  581
  623
  666
  712
  759
  808
  860
  914
  971
  1,030
  1,092
  1,157
  1,224
  1,295
  1,370
Earnings before tax, $m
  1,617
  1,753
  1,917
  2,088
  2,266
  2,451
  2,643
  2,843
  3,050
  3,266
  3,490
  3,915
  4,158
  4,410
  4,673
  4,947
  5,233
  5,531
  5,842
  6,167
  6,506
  6,860
  7,230
  7,618
  8,023
  8,446
  8,890
  9,355
  9,841
  10,351
  10,885
Tax expense, $m
  361
  473
  518
  564
  612
  662
  714
  768
  824
  882
  942
  1,057
  1,123
  1,191
  1,262
  1,336
  1,413
  1,493
  1,577
  1,665
  1,757
  1,852
  1,952
  2,057
  2,166
  2,281
  2,400
  2,526
  2,657
  2,795
  2,939
Net income, $m
  1,249
  1,280
  1,400
  1,524
  1,654
  1,789
  1,929
  2,075
  2,227
  2,384
  2,548
  2,858
  3,035
  3,220
  3,412
  3,612
  3,820
  4,038
  4,265
  4,502
  4,749
  5,008
  5,278
  5,561
  5,857
  6,166
  6,490
  6,829
  7,184
  7,556
  7,946

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,741
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  11,568
  10,753
  11,716
  12,719
  13,763
  14,849
  15,977
  17,150
  18,368
  19,634
  20,951
  22,320
  23,744
  25,226
  26,770
  28,378
  30,053
  31,801
  33,625
  35,528
  37,515
  39,592
  41,762
  44,031
  46,404
  48,888
  51,486
  54,207
  57,056
  60,040
  63,167
Adjusted assets (=assets-cash), $m
  9,827
  10,753
  11,716
  12,719
  13,763
  14,849
  15,977
  17,150
  18,368
  19,634
  20,951
  22,320
  23,744
  25,226
  26,770
  28,378
  30,053
  31,801
  33,625
  35,528
  37,515
  39,592
  41,762
  44,031
  46,404
  48,888
  51,486
  54,207
  57,056
  60,040
  63,167
Revenue / Adjusted assets
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
  1.203
Average production assets, $m
  2,463
  2,691
  2,932
  3,183
  3,444
  3,716
  3,998
  4,291
  4,596
  4,913
  5,242
  5,585
  5,941
  6,312
  6,698
  7,101
  7,520
  7,957
  8,414
  8,890
  9,387
  9,907
  10,450
  11,018
  11,612
  12,233
  12,883
  13,564
  14,277
  15,024
  15,806
Working capital, $m
  2,141
  647
  705
  765
  828
  893
  961
  1,032
  1,105
  1,181
  1,260
  1,343
  1,428
  1,517
  1,610
  1,707
  1,808
  1,913
  2,023
  2,137
  2,257
  2,381
  2,512
  2,648
  2,791
  2,941
  3,097
  3,261
  3,432
  3,611
  3,799
Total debt, $m
  3,572
  4,044
  4,730
  5,444
  6,188
  6,960
  7,764
  8,599
  9,466
  10,368
  11,305
  12,280
  13,294
  14,349
  15,448
  16,593
  17,786
  19,030
  20,329
  21,684
  23,099
  24,577
  26,123
  27,738
  29,428
  31,196
  33,046
  34,983
  37,012
  39,137
  41,363
Total liabilities, $m
  7,184
  7,656
  8,342
  9,056
  9,800
  10,572
  11,376
  12,211
  13,078
  13,980
  14,917
  15,892
  16,906
  17,961
  19,060
  20,205
  21,398
  22,642
  23,941
  25,296
  26,711
  28,189
  29,735
  31,350
  33,040
  34,808
  36,658
  38,595
  40,624
  42,749
  44,975
Total equity, $m
  4,384
  3,097
  3,374
  3,663
  3,964
  4,276
  4,601
  4,939
  5,290
  5,655
  6,034
  6,428
  6,838
  7,265
  7,710
  8,173
  8,655
  9,159
  9,684
  10,232
  10,804
  11,402
  12,027
  12,681
  13,364
  14,080
  14,828
  15,612
  16,432
  17,292
  18,192
Total liabilities and equity, $m
  11,568
  10,753
  11,716
  12,719
  13,764
  14,848
  15,977
  17,150
  18,368
  19,635
  20,951
  22,320
  23,744
  25,226
  26,770
  28,378
  30,053
  31,801
  33,625
  35,528
  37,515
  39,591
  41,762
  44,031
  46,404
  48,888
  51,486
  54,207
  57,056
  60,041
  63,167
Debt-to-equity ratio
  0.815
  1.310
  1.400
  1.490
  1.560
  1.630
  1.690
  1.740
  1.790
  1.830
  1.870
  1.910
  1.940
  1.980
  2.000
  2.030
  2.050
  2.080
  2.100
  2.120
  2.140
  2.160
  2.170
  2.190
  2.200
  2.220
  2.230
  2.240
  2.250
  2.260
  2.270
Adjusted equity ratio
  0.269
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,249
  1,280
  1,400
  1,524
  1,654
  1,789
  1,929
  2,075
  2,227
  2,384
  2,548
  2,858
  3,035
  3,220
  3,412
  3,612
  3,820
  4,038
  4,265
  4,502
  4,749
  5,008
  5,278
  5,561
  5,857
  6,166
  6,490
  6,829
  7,184
  7,556
  7,946
Depreciation, amort., depletion, $m
  464
  501
  529
  557
  587
  619
  651
  685
  720
  756
  794
  642
  683
  726
  770
  816
  864
  915
  967
  1,022
  1,079
  1,139
  1,201
  1,266
  1,335
  1,406
  1,481
  1,559
  1,641
  1,727
  1,817
Funds from operations, $m
  1,821
  1,781
  1,928
  2,082
  2,242
  2,408
  2,581
  2,760
  2,947
  3,140
  3,342
  3,500
  3,718
  3,945
  4,181
  4,428
  4,685
  4,952
  5,232
  5,524
  5,828
  6,147
  6,479
  6,827
  7,191
  7,572
  7,971
  8,388
  8,825
  9,283
  9,763
Change in working capital, $m
  21
  56
  58
  60
  63
  65
  68
  71
  73
  76
  79
  82
  86
  89
  93
  97
  101
  105
  110
  114
  120
  125
  131
  136
  143
  149
  156
  164
  171
  179
  188
Cash from operations, $m
  1,800
  1,725
  1,870
  2,021
  2,179
  2,343
  2,513
  2,689
  2,873
  3,064
  3,263
  3,418
  3,632
  3,856
  4,089
  4,331
  4,584
  4,847
  5,122
  5,409
  5,709
  6,022
  6,349
  6,691
  7,048
  7,423
  7,814
  8,224
  8,654
  9,103
  9,575
Maintenance CAPEX, $m
  0
  -283
  -309
  -337
  -366
  -396
  -427
  -460
  -493
  -528
  -565
  -603
  -642
  -683
  -726
  -770
  -816
  -864
  -915
  -967
  -1,022
  -1,079
  -1,139
  -1,201
  -1,266
  -1,335
  -1,406
  -1,481
  -1,559
  -1,641
  -1,727
New CAPEX, $m
  -504
  -228
  -241
  -251
  -261
  -272
  -282
  -293
  -305
  -317
  -329
  -343
  -356
  -371
  -386
  -402
  -419
  -437
  -456
  -476
  -497
  -520
  -543
  -568
  -594
  -621
  -650
  -681
  -713
  -747
  -782
Cash from investing activities, $m
  -2,214
  -511
  -550
  -588
  -627
  -668
  -709
  -753
  -798
  -845
  -894
  -946
  -998
  -1,054
  -1,112
  -1,172
  -1,235
  -1,301
  -1,371
  -1,443
  -1,519
  -1,599
  -1,682
  -1,769
  -1,860
  -1,956
  -2,056
  -2,162
  -2,272
  -2,388
  -2,509
Free cash flow, $m
  -414
  1,215
  1,320
  1,433
  1,552
  1,675
  1,803
  1,937
  2,075
  2,219
  2,369
  2,472
  2,634
  2,802
  2,977
  3,159
  3,348
  3,546
  3,751
  3,966
  4,190
  4,423
  4,667
  4,922
  5,188
  5,467
  5,758
  6,063
  6,382
  6,716
  7,065
Issuance/(repayment) of debt, $m
  1,357
  661
  686
  714
  743
  773
  803
  835
  867
  902
  937
  975
  1,014
  1,055
  1,099
  1,145
  1,193
  1,244
  1,298
  1,355
  1,415
  1,478
  1,545
  1,616
  1,690
  1,768
  1,850
  1,937
  2,029
  2,125
  2,226
Issuance/(repurchase) of shares, $m
  -413
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,116
  661
  686
  714
  743
  773
  803
  835
  867
  902
  937
  975
  1,014
  1,055
  1,099
  1,145
  1,193
  1,244
  1,298
  1,355
  1,415
  1,478
  1,545
  1,616
  1,690
  1,768
  1,850
  1,937
  2,029
  2,125
  2,226
Total cash flow (excl. dividends), $m
  708
  1,875
  2,006
  2,148
  2,295
  2,448
  2,607
  2,771
  2,943
  3,121
  3,306
  3,447
  3,648
  3,857
  4,076
  4,304
  4,542
  4,790
  5,050
  5,321
  5,605
  5,902
  6,212
  6,537
  6,878
  7,235
  7,608
  8,000
  8,410
  8,840
  9,291
Retained Cash Flow (-), $m
  -812
  -265
  -277
  -289
  -301
  -313
  -325
  -338
  -351
  -365
  -379
  -394
  -410
  -427
  -445
  -463
  -483
  -503
  -525
  -548
  -572
  -598
  -625
  -653
  -684
  -715
  -748
  -784
  -821
  -859
  -900
Prev. year cash balance distribution, $m
 
  1,552
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,163
  1,728
  1,859
  1,994
  2,135
  2,282
  2,434
  2,592
  2,756
  2,927
  3,053
  3,238
  3,431
  3,631
  3,841
  4,059
  4,287
  4,524
  4,773
  5,032
  5,304
  5,587
  5,884
  6,194
  6,520
  6,860
  7,216
  7,590
  7,981
  8,391
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  3,032
  1,582
  1,618
  1,642
  1,655
  1,656
  1,644
  1,620
  1,583
  1,534
  1,450
  1,382
  1,304
  1,219
  1,128
  1,031
  933
  833
  735
  639
  549
  464
  386
  315
  254
  200
  155
  117
  87
  63
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

The Estee Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance and hair care products. The Company offers products, including skin care, makeup, fragrance, hair care and other. The Company operates in beauty products segment. The Company's products are sold in over 150 countries and territories under brand names, including Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, MAC, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, By Kilian, BECCA and Too Faced. Its skin care products include moisturizers, serums, cleansers, toners, body care, exfoliators, acne and oil correctors, facial masks, cleansing devices and sun care products.

FINANCIAL RATIOS  of  Estee Lauder Cl A (EL)

Valuation Ratios
P/E Ratio 37
Price to Sales 3.9
Price to Book 10.5
Price to Tangible Book
Price to Cash Flow 25.7
Price to Free Cash Flow 35.6
Growth Rates
Sales Growth Rate 5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4%
Cap. Spend. - 3 Yr. Gr. Rate -0.2%
Financial Strength
Quick Ratio 9
Current Ratio 0
LT Debt to Equity 77.2%
Total Debt to Equity 81.5%
Interest Coverage 18
Management Effectiveness
Return On Assets 12.7%
Ret/ On Assets - 3 Yr. Avg. 13.4%
Return On Total Capital 18.1%
Ret/ On T. Cap. - 3 Yr. Avg. 19.7%
Return On Equity 31.4%
Return On Equity - 3 Yr. Avg. 30.5%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 79.4%
Gross Margin - 3 Yr. Avg. 80.2%
EBITDA Margin 18.4%
EBITDA Margin - 3 Yr. Avg. 18.5%
Operating Margin 14.3%
Oper. Margin - 3 Yr. Avg. 14.5%
Pre-Tax Margin 13.7%
Pre-Tax Margin - 3 Yr. Avg. 14%
Net Profit Margin 10.6%
Net Profit Margin - 3 Yr. Avg. 10.2%
Effective Tax Rate 22.3%
Eff/ Tax Rate - 3 Yr. Avg. 26.7%
Payout Ratio 38.9%

EL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EL stock intrinsic value calculation we used $11824 million for the last fiscal year's total revenue generated by Estee Lauder Cl A. The default revenue input number comes from 2017 income statement of Estee Lauder Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EL stock valuation model: a) initial revenue growth rate of 9.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for EL is calculated based on our internal credit rating of Estee Lauder Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Estee Lauder Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EL stock the variable cost ratio is equal to 85.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $34 million in the base year in the intrinsic value calculation for EL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Estee Lauder Cl A.

Corporate tax rate of 27% is the nominal tax rate for Estee Lauder Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EL are equal to 20.8%.

Life of production assets of 8.7 years is the average useful life of capital assets used in Estee Lauder Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EL is equal to 5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4384 million for Estee Lauder Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 368.566 million for Estee Lauder Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Estee Lauder Cl A at the current share price and the inputted number of shares is $46.2 billion.

RELATED COMPANIES Price Int.Val. Rating
COTY Coty Cl A 17.91 41.76  str.buy
AVP Avon Products 1.98 0.34  str.sell
REV Revlon Cl A 21.70 53.98  str.buy
IPAR Inter Parfums 43.75 34.51  hold
PG Procter&Gamble 90.23 66.18  sell

COMPANY NEWS

▶ 17 Highest Paid CEOs in the World in 2017   [Nov-24-17 09:51AM  Insider Monkey]
▶ Top 4 Cosmetics Stocks of 2017   [Nov-13-17 10:59AM  Investopedia]
▶ These 3 Stocks Just Raised Their Dividends   [Nov-12-17 11:47AM  Motley Fool]
▶ How to Invest In the Selfie Generation   [Nov-03-17 04:38PM  TheStreet.com]
▶ Stocks To Watch: Estee Lauder Sees RS Rating Rise To 92   [03:00AM  Investor's Business Daily]
▶ What Happened in the Stock Market Today   [Nov-01-17 05:08PM  Motley Fool]
▶ Why Estee Lauder Stock Jumped Today   [01:55PM  Motley Fool]
▶ Top 5 Companies Owned By Estee Lauder (EL)   [10:57AM  Investopedia]
▶ Estee Lauder tops Street 1Q forecasts   [06:59AM  Associated Press]
▶ Estee Lauder Looks Set to Report a Beautiful Quarter   [Oct-31-17 10:00AM  TheStreet.com]
▶ Estee Lauder Faces Further Sideways Action   [10:41AM  TheStreet.com]
▶ Were We Too Bullish on Estee Lauder?   [12:22PM  TheStreet.com]
▶ Estée Lauder Chairman on Breast Cancer Campaign   [Oct-10-17 06:10AM  Bloomberg Video]
▶ Spiros Segalas Picks Up 5 New Stocks in 3rd Quarter   [Oct-02-17 02:00PM  GuruFocus.com]
▶ Estee Lauder's Sitting Pretty   [07:00AM  Morningstar]
▶ Estée Lauder's New CIO To Expand Analytics, Social Media Use   [Sep-29-17 02:41PM  The Wall Street Journal]
▶ 5 ways to trade extreme stocks   [Sep-20-17 05:00PM  CNBC Videos]
▶ Should You Buy The Estée Lauder Companies Inc (EL)?   [Sep-11-17 01:09PM  Simply Wall St.]
Financial statements of EL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.