Intrinsic value of Estee Lauder Cl A - EL

Previous Close

$134.45

  Intrinsic Value

$109.79

stock screener

  Rating & Target

hold

-18%

Previous close

$134.45

 
Intrinsic value

$109.79

 
Up/down potential

-18%

 
Rating

hold

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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
  14.30
  13.37
  12.53
  11.78
  11.10
  10.49
  9.94
  9.45
  9.00
  8.60
  8.24
  7.92
  7.63
  7.36
  7.13
  6.91
  6.72
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
Revenue, $m
  11,824
  13,515
  15,322
  17,242
  19,273
  21,413
  23,659
  26,012
  28,469
  31,032
  33,702
  36,480
  39,369
  42,371
  45,491
  48,734
  52,104
  55,607
  59,250
  63,039
  66,983
  71,089
  75,367
  79,826
  84,475
  89,326
  94,388
  99,675
  105,198
  110,970
  117,004
Variable operating expenses, $m
 
  11,514
  13,028
  14,637
  16,339
  18,131
  20,013
  21,984
  24,043
  26,190
  28,427
  30,563
  32,983
  35,498
  38,112
  40,829
  43,652
  46,587
  49,639
  52,814
  56,118
  59,558
  63,142
  66,878
  70,773
  74,837
  79,078
  83,507
  88,134
  92,970
  98,026
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
  11,549
  13,064
  14,674
  16,377
  18,169
  20,052
  22,024
  24,084
  26,232
  28,471
  30,608
  33,029
  35,545
  38,160
  40,878
  43,702
  46,639
  49,692
  52,868
  56,174
  59,615
  63,201
  66,938
  70,834
  74,900
  79,143
  83,573
  88,202
  93,040
  98,097
Operating income, $m
  1,692
  1,966
  2,258
  2,569
  2,897
  3,243
  3,607
  3,987
  4,385
  4,800
  5,232
  5,873
  6,340
  6,826
  7,331
  7,856
  8,401
  8,968
  9,558
  10,171
  10,809
  11,474
  12,166
  12,888
  13,641
  14,426
  15,246
  16,101
  16,996
  17,930
  18,907
EBITDA, $m
  2,156
  2,480
  2,816
  3,172
  3,549
  3,947
  4,364
  4,801
  5,257
  5,733
  6,229
  6,745
  7,281
  7,839
  8,418
  9,021
  9,647
  10,297
  10,974
  11,678
  12,411
  13,174
  13,968
  14,797
  15,660
  16,562
  17,502
  18,485
  19,511
  20,583
  21,705
Interest expense (income), $m
  96
  118
  154
  191
  231
  273
  317
  364
  412
  463
  516
  572
  629
  689
  751
  816
  883
  953
  1,025
  1,101
  1,179
  1,261
  1,346
  1,435
  1,527
  1,623
  1,724
  1,829
  1,938
  2,053
  2,172
Earnings before tax, $m
  1,617
  1,847
  2,104
  2,378
  2,666
  2,970
  3,289
  3,623
  3,972
  4,336
  4,715
  5,301
  5,711
  6,137
  6,580
  7,040
  7,518
  8,015
  8,532
  9,070
  9,630
  10,213
  10,820
  11,453
  12,114
  12,802
  13,522
  14,273
  15,057
  15,877
  16,735
Tax expense, $m
  361
  499
  568
  642
  720
  802
  888
  978
  1,073
  1,171
  1,273
  1,431
  1,542
  1,657
  1,776
  1,901
  2,030
  2,164
  2,304
  2,449
  2,600
  2,757
  2,921
  3,092
  3,271
  3,457
  3,651
  3,854
  4,065
  4,287
  4,518
Net income, $m
  1,249
  1,349
  1,536
  1,736
  1,946
  2,168
  2,401
  2,645
  2,900
  3,165
  3,442
  3,870
  4,169
  4,480
  4,803
  5,139
  5,488
  5,851
  6,228
  6,621
  7,030
  7,455
  7,899
  8,361
  8,843
  9,346
  9,871
  10,419
  10,992
  11,591
  12,217

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
  11,234
  12,736
  14,333
  16,021
  17,799
  19,667
  21,622
  23,665
  25,796
  28,015
  30,324
  32,725
  35,221
  37,815
  40,510
  43,311
  46,223
  49,251
  52,402
  55,680
  59,093
  62,649
  66,356
  70,220
  74,252
  78,461
  82,855
  87,446
  92,244
  97,260
Adjusted assets (=assets-cash), $m
  9,827
  11,234
  12,736
  14,333
  16,021
  17,799
  19,667
  21,622
  23,665
  25,796
  28,015
  30,324
  32,725
  35,221
  37,815
  40,510
  43,311
  46,223
  49,251
  52,402
  55,680
  59,093
  62,649
  66,356
  70,220
  74,252
  78,461
  82,855
  87,446
  92,244
  97,260
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
  2,811
  3,187
  3,586
  4,009
  4,454
  4,921
  5,410
  5,922
  6,455
  7,010
  7,588
  8,189
  8,813
  9,462
  10,137
  10,838
  11,566
  12,324
  13,112
  13,932
  14,787
  15,676
  16,604
  17,571
  18,580
  19,633
  20,732
  21,881
  23,082
  24,337
Working capital, $m
  2,141
  676
  766
  862
  964
  1,071
  1,183
  1,301
  1,423
  1,552
  1,685
  1,824
  1,968
  2,119
  2,275
  2,437
  2,605
  2,780
  2,962
  3,152
  3,349
  3,554
  3,768
  3,991
  4,224
  4,466
  4,719
  4,984
  5,260
  5,548
  5,850
Total debt, $m
  3,572
  4,387
  5,456
  6,593
  7,795
  9,061
  10,391
  11,783
  13,238
  14,755
  16,335
  17,979
  19,689
  21,466
  23,312
  25,231
  27,226
  29,299
  31,455
  33,698
  36,032
  38,463
  40,994
  43,633
  46,385
  49,256
  52,252
  55,381
  58,650
  62,066
  65,637
Total liabilities, $m
  7,184
  7,999
  9,068
  10,205
  11,407
  12,673
  14,003
  15,395
  16,850
  18,367
  19,947
  21,591
  23,301
  25,078
  26,924
  28,843
  30,838
  32,911
  35,067
  37,310
  39,644
  42,075
  44,606
  47,245
  49,997
  52,868
  55,864
  58,993
  62,262
  65,678
  69,249
Total equity, $m
  4,384
  3,235
  3,668
  4,128
  4,614
  5,126
  5,664
  6,227
  6,816
  7,429
  8,068
  8,733
  9,425
  10,144
  10,891
  11,667
  12,474
  13,312
  14,184
  15,092
  16,036
  17,019
  18,043
  19,110
  20,223
  21,385
  22,597
  23,862
  25,184
  26,566
  28,011
Total liabilities and equity, $m
  11,568
  11,234
  12,736
  14,333
  16,021
  17,799
  19,667
  21,622
  23,666
  25,796
  28,015
  30,324
  32,726
  35,222
  37,815
  40,510
  43,312
  46,223
  49,251
  52,402
  55,680
  59,094
  62,649
  66,355
  70,220
  74,253
  78,461
  82,855
  87,446
  92,244
  97,260
Debt-to-equity ratio
  0.815
  1.360
  1.490
  1.600
  1.690
  1.770
  1.830
  1.890
  1.940
  1.990
  2.020
  2.060
  2.090
  2.120
  2.140
  2.160
  2.180
  2.200
  2.220
  2.230
  2.250
  2.260
  2.270
  2.280
  2.290
  2.300
  2.310
  2.320
  2.330
  2.340
  2.340
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
  1,349
  1,536
  1,736
  1,946
  2,168
  2,401
  2,645
  2,900
  3,165
  3,442
  3,870
  4,169
  4,480
  4,803
  5,139
  5,488
  5,851
  6,228
  6,621
  7,030
  7,455
  7,899
  8,361
  8,843
  9,346
  9,871
  10,419
  10,992
  11,591
  12,217
Depreciation, amort., depletion, $m
  464
  515
  558
  604
  652
  704
  757
  813
  872
  934
  997
  872
  941
  1,013
  1,088
  1,165
  1,246
  1,329
  1,417
  1,507
  1,601
  1,700
  1,802
  1,908
  2,020
  2,136
  2,257
  2,383
  2,515
  2,653
  2,797
Funds from operations, $m
  1,821
  1,863
  2,094
  2,339
  2,599
  2,872
  3,159
  3,459
  3,772
  4,099
  4,439
  4,742
  5,110
  5,493
  5,891
  6,304
  6,734
  7,180
  7,645
  8,128
  8,631
  9,155
  9,701
  10,269
  10,863
  11,481
  12,127
  12,802
  13,507
  14,244
  15,014
Change in working capital, $m
  21
  85
  90
  96
  102
  107
  112
  118
  123
  128
  133
  139
  144
  150
  156
  162
  168
  175
  182
  189
  197
  205
  214
  223
  232
  243
  253
  264
  276
  289
  302
Cash from operations, $m
  1,800
  1,779
  2,004
  2,243
  2,497
  2,765
  3,046
  3,341
  3,649
  3,971
  4,306
  4,603
  4,966
  5,343
  5,735
  6,142
  6,565
  7,005
  7,463
  7,939
  8,434
  8,950
  9,487
  10,046
  10,630
  11,239
  11,874
  12,538
  13,231
  13,955
  14,712
Maintenance CAPEX, $m
  0
  -283
  -323
  -366
  -412
  -461
  -512
  -566
  -622
  -681
  -742
  -806
  -872
  -941
  -1,013
  -1,088
  -1,165
  -1,246
  -1,329
  -1,417
  -1,507
  -1,601
  -1,700
  -1,802
  -1,908
  -2,020
  -2,136
  -2,257
  -2,383
  -2,515
  -2,653
New CAPEX, $m
  -504
  -348
  -376
  -399
  -422
  -445
  -467
  -489
  -511
  -533
  -555
  -578
  -601
  -625
  -649
  -674
  -701
  -729
  -758
  -788
  -820
  -854
  -890
  -927
  -967
  -1,009
  -1,053
  -1,100
  -1,149
  -1,201
  -1,255
Cash from investing activities, $m
  -2,214
  -631
  -699
  -765
  -834
  -906
  -979
  -1,055
  -1,133
  -1,214
  -1,297
  -1,384
  -1,473
  -1,566
  -1,662
  -1,762
  -1,866
  -1,975
  -2,087
  -2,205
  -2,327
  -2,455
  -2,590
  -2,729
  -2,875
  -3,029
  -3,189
  -3,357
  -3,532
  -3,716
  -3,908
Free cash flow, $m
  -414
  1,148
  1,305
  1,478
  1,663
  1,859
  2,067
  2,286
  2,516
  2,757
  3,009
  3,219
  3,493
  3,777
  4,073
  4,380
  4,699
  5,031
  5,376
  5,734
  6,107
  6,494
  6,897
  7,317
  7,755
  8,210
  8,686
  9,181
  9,699
  10,239
  10,804
Issuance/(repayment) of debt, $m
  1,357
  1,004
  1,069
  1,137
  1,202
  1,266
  1,330
  1,392
  1,455
  1,517
  1,580
  1,644
  1,710
  1,777
  1,847
  1,919
  1,994
  2,073
  2,156
  2,243
  2,334
  2,430
  2,532
  2,639
  2,752
  2,871
  2,996
  3,129
  3,269
  3,416
  3,572
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
  1,004
  1,069
  1,137
  1,202
  1,266
  1,330
  1,392
  1,455
  1,517
  1,580
  1,644
  1,710
  1,777
  1,847
  1,919
  1,994
  2,073
  2,156
  2,243
  2,334
  2,430
  2,532
  2,639
  2,752
  2,871
  2,996
  3,129
  3,269
  3,416
  3,572
Total cash flow (excl. dividends), $m
  708
  2,151
  2,374
  2,614
  2,865
  3,125
  3,397
  3,678
  3,971
  4,274
  4,589
  4,864
  5,202
  5,554
  5,919
  6,299
  6,694
  7,104
  7,532
  7,977
  8,441
  8,924
  9,429
  9,956
  10,506
  11,081
  11,682
  12,310
  12,968
  13,655
  14,375
Retained Cash Flow (-), $m
  -812
  -403
  -433
  -460
  -486
  -512
  -538
  -563
  -588
  -614
  -639
  -665
  -692
  -719
  -747
  -776
  -807
  -839
  -872
  -907
  -944
  -983
  -1,024
  -1,067
  -1,113
  -1,161
  -1,212
  -1,266
  -1,322
  -1,382
  -1,445
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
 
  3,300
  1,942
  2,154
  2,378
  2,613
  2,859
  3,115
  3,382
  3,660
  3,950
  4,198
  4,511
  4,835
  5,172
  5,523
  5,887
  6,266
  6,660
  7,070
  7,497
  7,941
  8,405
  8,889
  9,393
  9,920
  10,470
  11,045
  11,646
  12,274
  12,931
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
 
  3,164
  1,778
  1,875
  1,958
  2,026
  2,075
  2,105
  2,114
  2,103
  2,071
  1,994
  1,925
  1,838
  1,736
  1,621
  1,496
  1,363
  1,226
  1,089
  953
  821
  697
  583
  478
  386
  305
  237
  180
  134
  97
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 39.6
Price to Sales 4.2
Price to Book 11.3
Price to Tangible Book
Price to Cash Flow 27.5
Price to Free Cash Flow 38.2
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 14.3% 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 370.088 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 $49.8 billion.

RELATED COMPANIES Price Int.Val. Rating
COTY Coty Cl A 20.53 55.34  str.buy
AVP Avon Products 2.33 0.33  str.sell
REV Revlon Cl A 22.35 11.57  sell
IPAR Inter Parfums 47.80 31.61  sell
PG Procter&Gamble 91.07 66.39  sell

COMPANY NEWS

▶ Top 4 Cosmetics Stocks of 2018   [Jan-10-18 08:55AM  Investopedia]
▶ Why Estee Lauder Companies Inc Soared 66% in 2017   [Jan-09-18 09:52AM  Motley Fool]
▶ Estee Lauder Is Looking Beautiful   [Dec-14-17 11:35AM  GuruFocus.com]
▶ 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]
Financial statements of EL
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