Intrinsic value of Estee Lauder Cl A - EL

Previous Close

$128.82

  Intrinsic Value

$196.78

stock screener

  Rating & Target

str. buy

+53%

Previous close

$128.82

 
Intrinsic value

$196.78

 
Up/down potential

+53%

 
Rating

str. buy

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 0001), $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 28.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  18.00
  16.70
  15.53
  14.48
  13.53
  12.68
  11.91
  11.22
  10.60
  10.04
  9.53
  9.08
  8.67
  8.30
  7.97
  7.68
  7.41
  7.17
  6.95
  6.76
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
  5.76
  5.68
  5.61
Revenue, $m
  13,952
  16,282
  18,811
  21,534
  24,448
  27,547
  30,827
  34,285
  37,918
  41,724
  45,701
  49,851
  54,174
  58,673
  63,351
  68,214
  73,268
  78,520
  83,978
  89,652
  95,552
  101,688
  108,075
  114,724
  121,649
  128,867
  136,393
  144,244
  152,437
  160,992
Variable operating expenses, $m
  11,857
  13,783
  15,873
  18,124
  20,532
  23,094
  25,805
  28,664
  31,667
  34,812
  37,776
  41,205
  44,779
  48,497
  52,364
  56,384
  60,562
  64,903
  69,414
  74,104
  78,980
  84,053
  89,332
  94,827
  100,552
  106,518
  112,739
  119,228
  126,000
  133,072
Fixed operating expenses, $m
  35
  36
  36
  37
  38
  39
  40
  40
  41
  42
  43
  44
  45
  46
  47
  48
  49
  50
  51
  53
  54
  55
  56
  57
  59
  60
  61
  63
  64
  65
Total operating expenses, $m
  11,892
  13,819
  15,909
  18,161
  20,570
  23,133
  25,845
  28,704
  31,708
  34,854
  37,819
  41,249
  44,824
  48,543
  52,411
  56,432
  60,611
  64,953
  69,465
  74,157
  79,034
  84,108
  89,388
  94,884
  100,611
  106,578
  112,800
  119,291
  126,064
  133,137
Operating income, $m
  2,061
  2,464
  2,902
  3,373
  3,878
  4,414
  4,982
  5,581
  6,210
  6,870
  7,883
  8,601
  9,350
  10,129
  10,940
  11,782
  12,658
  13,567
  14,513
  15,496
  16,518
  17,581
  18,687
  19,839
  21,039
  22,289
  23,593
  24,953
  26,373
  27,855
EBITDA, $m
  2,768
  3,236
  3,743
  4,289
  4,874
  5,495
  6,154
  6,847
  7,576
  8,340
  9,138
  9,971
  10,838
  11,741
  12,680
  13,656
  14,670
  15,724
  16,820
  17,958
  19,142
  20,374
  21,656
  22,990
  24,381
  25,829
  27,340
  28,916
  30,560
  32,278
Interest expense (income), $m
  96
  193
  263
  339
  422
  512
  607
  709
  816
  930
  1,049
  1,174
  1,305
  1,441
  1,583
  1,730
  1,884
  2,043
  2,209
  2,381
  2,560
  2,747
  2,940
  3,142
  3,351
  3,569
  3,797
  4,033
  4,280
  4,538
  4,807
Earnings before tax, $m
  1,868
  2,201
  2,563
  2,951
  3,366
  3,807
  4,274
  4,765
  5,280
  5,820
  6,709
  7,297
  7,909
  8,547
  9,210
  9,898
  10,614
  11,358
  12,131
  12,935
  13,771
  14,640
  15,545
  16,488
  17,469
  18,493
  19,560
  20,673
  21,835
  23,048
Tax expense, $m
  504
  594
  692
  797
  909
  1,028
  1,154
  1,286
  1,426
  1,572
  1,811
  1,970
  2,136
  2,308
  2,487
  2,673
  2,866
  3,067
  3,275
  3,492
  3,718
  3,953
  4,197
  4,452
  4,717
  4,993
  5,281
  5,582
  5,895
  6,223
Net income, $m
  1,363
  1,607
  1,871
  2,154
  2,457
  2,779
  3,120
  3,478
  3,855
  4,249
  4,897
  5,327
  5,774
  6,239
  6,723
  7,226
  7,748
  8,291
  8,856
  9,443
  10,053
  10,688
  11,348
  12,036
  12,753
  13,500
  14,279
  15,091
  15,940
  16,825

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  13,652
  15,932
  18,406
  21,071
  23,921
  26,954
  30,164
  33,547
  37,102
  40,826
  44,718
  48,778
  53,008
  57,410
  61,987
  66,746
  71,691
  76,830
  82,171
  87,722
  93,495
  99,499
  105,748
  112,254
  119,031
  126,093
  133,457
  141,139
  149,156
  157,527
Adjusted assets (=assets-cash), $m
  13,652
  15,932
  18,406
  21,071
  23,921
  26,954
  30,164
  33,547
  37,102
  40,826
  44,718
  48,778
  53,008
  57,410
  61,987
  66,746
  71,691
  76,830
  82,171
  87,722
  93,495
  99,499
  105,748
  112,254
  119,031
  126,093
  133,457
  141,139
  149,156
  157,527
Revenue / Adjusted assets
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
  1.022
Average production assets, $m
  3,335
  3,891
  4,496
  5,147
  5,843
  6,584
  7,368
  8,194
  9,062
  9,972
  10,923
  11,914
  12,948
  14,023
  15,141
  16,303
  17,511
  18,766
  20,071
  21,427
  22,837
  24,304
  25,830
  27,419
  29,074
  30,799
  32,598
  34,474
  36,432
  38,477
Working capital, $m
  698
  814
  941
  1,077
  1,222
  1,377
  1,541
  1,714
  1,896
  2,086
  2,285
  2,493
  2,709
  2,934
  3,168
  3,411
  3,663
  3,926
  4,199
  4,483
  4,778
  5,084
  5,404
  5,736
  6,082
  6,443
  6,820
  7,212
  7,622
  8,050
Total debt, $m
  4,866
  6,282
  7,818
  9,473
  11,243
  13,126
  15,120
  17,221
  19,428
  21,741
  24,158
  26,679
  29,306
  32,039
  34,882
  37,837
  40,908
  44,099
  47,416
  50,863
  54,448
  58,177
  62,058
  66,098
  70,306
  74,692
  79,265
  84,035
  89,014
  94,212
Total liabilities, $m
  8,478
  9,894
  11,430
  13,085
  14,855
  16,738
  18,732
  20,833
  23,040
  25,353
  27,770
  30,291
  32,918
  35,651
  38,494
  41,449
  44,520
  47,711
  51,028
  54,475
  58,060
  61,789
  65,670
  69,710
  73,918
  78,304
  82,877
  87,647
  92,626
  97,824
Total equity, $m
  5,174
  6,038
  6,976
  7,986
  9,066
  10,215
  11,432
  12,714
  14,062
  15,473
  16,948
  18,487
  20,090
  21,758
  23,493
  25,297
  27,171
  29,119
  31,143
  33,247
  35,435
  37,710
  40,079
  42,544
  45,113
  47,789
  50,580
  53,492
  56,530
  59,703
Total liabilities and equity, $m
  13,652
  15,932
  18,406
  21,071
  23,921
  26,953
  30,164
  33,547
  37,102
  40,826
  44,718
  48,778
  53,008
  57,409
  61,987
  66,746
  71,691
  76,830
  82,171
  87,722
  93,495
  99,499
  105,749
  112,254
  119,031
  126,093
  133,457
  141,139
  149,156
  157,527
Debt-to-equity ratio
  0.940
  1.040
  1.120
  1.190
  1.240
  1.280
  1.320
  1.350
  1.380
  1.410
  1.430
  1.440
  1.460
  1.470
  1.480
  1.500
  1.510
  1.510
  1.520
  1.530
  1.540
  1.540
  1.550
  1.550
  1.560
  1.560
  1.570
  1.570
  1.570
  1.580
Adjusted equity ratio
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,363
  1,607
  1,871
  2,154
  2,457
  2,779
  3,120
  3,478
  3,855
  4,249
  4,897
  5,327
  5,774
  6,239
  6,723
  7,226
  7,748
  8,291
  8,856
  9,443
  10,053
  10,688
  11,348
  12,036
  12,753
  13,500
  14,279
  15,091
  15,940
  16,825
Depreciation, amort., depletion, $m
  708
  772
  841
  916
  996
  1,081
  1,171
  1,266
  1,366
  1,471
  1,255
  1,369
  1,488
  1,612
  1,740
  1,874
  2,013
  2,157
  2,307
  2,463
  2,625
  2,794
  2,969
  3,152
  3,342
  3,540
  3,747
  3,963
  4,188
  4,423
Funds from operations, $m
  2,071
  2,378
  2,712
  3,070
  3,453
  3,860
  4,291
  4,744
  5,221
  5,719
  6,153
  6,696
  7,262
  7,851
  8,463
  9,100
  9,761
  10,449
  11,163
  11,905
  12,678
  13,481
  14,317
  15,188
  16,095
  17,040
  18,025
  19,054
  20,127
  21,248
Change in working capital, $m
  106
  117
  126
  136
  146
  155
  164
  173
  182
  190
  199
  207
  216
  225
  234
  243
  253
  263
  273
  284
  295
  307
  319
  332
  346
  361
  376
  393
  410
  428
Cash from operations, $m
  1,965
  2,262
  2,585
  2,934
  3,308
  3,705
  4,127
  4,572
  5,039
  5,529
  5,954
  6,489
  7,046
  7,626
  8,229
  8,857
  9,509
  10,186
  10,890
  11,622
  12,383
  13,174
  13,998
  14,855
  15,748
  16,679
  17,649
  18,661
  19,717
  20,820
Maintenance CAPEX, $m
  -325
  -383
  -447
  -517
  -592
  -672
  -757
  -847
  -942
  -1,042
  -1,146
  -1,255
  -1,369
  -1,488
  -1,612
  -1,740
  -1,874
  -2,013
  -2,157
  -2,307
  -2,463
  -2,625
  -2,794
  -2,969
  -3,152
  -3,342
  -3,540
  -3,747
  -3,963
  -4,188
New CAPEX, $m
  -504
  -557
  -604
  -651
  -696
  -741
  -784
  -827
  -868
  -910
  -951
  -992
  -1,033
  -1,075
  -1,118
  -1,162
  -1,208
  -1,255
  -1,304
  -1,356
  -1,410
  -1,467
  -1,526
  -1,589
  -1,655
  -1,725
  -1,799
  -1,876
  -1,958
  -2,045
Cash from investing activities, $m
  -829
  -940
  -1,051
  -1,168
  -1,288
  -1,413
  -1,541
  -1,674
  -1,810
  -1,952
  -2,097
  -2,247
  -2,402
  -2,563
  -2,730
  -2,902
  -3,082
  -3,268
  -3,461
  -3,663
  -3,873
  -4,092
  -4,320
  -4,558
  -4,807
  -5,067
  -5,339
  -5,623
  -5,921
  -6,233
Free cash flow, $m
  1,135
  1,322
  1,534
  1,766
  2,020
  2,293
  2,586
  2,898
  3,229
  3,578
  3,857
  4,241
  4,643
  5,063
  5,499
  5,954
  6,427
  6,918
  7,428
  7,959
  8,510
  9,083
  9,678
  10,297
  10,941
  11,612
  12,310
  13,038
  13,797
  14,588
Issuance/(repayment) of debt, $m
  1,294
  1,416
  1,536
  1,655
  1,770
  1,883
  1,993
  2,101
  2,207
  2,312
  2,417
  2,521
  2,627
  2,734
  2,843
  2,955
  3,071
  3,191
  3,317
  3,448
  3,585
  3,729
  3,880
  4,040
  4,208
  4,386
  4,573
  4,770
  4,979
  5,198
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,294
  1,416
  1,536
  1,655
  1,770
  1,883
  1,993
  2,101
  2,207
  2,312
  2,417
  2,521
  2,627
  2,734
  2,843
  2,955
  3,071
  3,191
  3,317
  3,448
  3,585
  3,729
  3,880
  4,040
  4,208
  4,386
  4,573
  4,770
  4,979
  5,198
Total cash flow (excl. dividends), $m
  2,429
  2,738
  3,070
  3,421
  3,790
  4,176
  4,579
  4,999
  5,436
  5,890
  6,274
  6,763
  7,270
  7,796
  8,342
  8,909
  9,498
  10,109
  10,745
  11,406
  12,095
  12,811
  13,558
  14,337
  15,150
  15,998
  16,883
  17,808
  18,775
  19,786
Retained Cash Flow (-), $m
  -790
  -864
  -938
  -1,010
  -1,080
  -1,149
  -1,217
  -1,282
  -1,347
  -1,411
  -1,475
  -1,539
  -1,603
  -1,668
  -1,735
  -1,803
  -1,874
  -1,948
  -2,024
  -2,104
  -2,188
  -2,276
  -2,368
  -2,466
  -2,568
  -2,677
  -2,791
  -2,911
  -3,039
  -3,173
Prev. year cash balance distribution, $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 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
  1,639
  1,874
  2,132
  2,411
  2,710
  3,027
  3,363
  3,717
  4,089
  4,479
  4,799
  5,224
  5,667
  6,128
  6,607
  7,106
  7,623
  8,162
  8,721
  9,302
  9,907
  10,536
  11,190
  11,872
  12,581
  13,321
  14,092
  14,897
  15,737
  16,614
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
  1,572
  1,715
  1,856
  1,985
  2,100
  2,197
  2,272
  2,323
  2,349
  2,348
  2,279
  2,229
  2,155
  2,057
  1,940
  1,806
  1,659
  1,503
  1,343
  1,182
  1,025
  874
  733
  605
  489
  389
  302
  230
  172
  125
Current shareholders' claim on cash, %
  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 38
Price to Sales 4
Price to Book 10.8
Price to Tangible Book
Price to Cash Flow 26.3
Price to Free Cash Flow 36.6
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 0001 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 18% 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 5.4% 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 23.9%.

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 223.987 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 $28.9 billion.

RELATED COMPANIES Price Int.Val. Rating
COTY Coty Cl A 11.21 24.06  str.buy
AVP Avon Products 2.02 0.44  str.sell
REV Revlon Cl A 26.50 0.02  str.sell
IPAR Inter Parfums 57.52 57.55  hold
PG Procter&Gamble 81.86 86.63  hold

COMPANY NEWS

▶ [$$] Estée Lauder's Tracey Travis Puts Stock in Developing Talent   [Oct-18-18 05:30AM  The Wall Street Journal]
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▶ [$$] Estée Lauder Sues Deciem After Founder Shuts Stores   [04:43PM  The Wall Street Journal]
▶ Bears Show No Mercy As Stock Market Crumbles   [12:05PM  Investor's Business Daily]
▶ Cramer's consumer staples 'power ranking'   [Oct-09-18 07:03PM  CNBC Videos]
▶ Will Estee Lauder Stock Keep Shining On?   [Oct-05-18 09:56AM  InvestorPlace]
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▶ Sephora site adds Origin's cannabis-based face mask   [Sep-18-18 09:21AM  American City Business Journals]
▶ Estée Lauder seeks expansion, tax breaks in Long Island   [Aug-23-18 02:34PM  American City Business Journals]
▶ [$$] Estée Lauder Posts Robust Sales Growth   [Aug-20-18 07:42PM  The Wall Street Journal]
▶ What Happened in the Stock Market Today   [05:00PM  Motley Fool]
▶ Wall Street High Monday   [01:54PM  GuruFocus.com]
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▶ Blue Chips Keep Their Lead; Lululemon Hits New High   [11:58AM  Investor's Business Daily]
▶ Why Pay a Premium for Estee Lauder?   [10:53AM  TheStreet.com]
▶ [$$] Estee Lauder Reports 14% Sales Growth   [10:49AM  The Wall Street Journal]
▶ Estee Lauder: Fiscal 4Q Earnings Snapshot   [07:19AM  Associated Press]
▶ Trade war's newest victims   [Jul-11-18 05:00PM  CNBC Videos]
▶ Analyst: elf Beauty Positioned As Takeout Target   [Jul-02-18 12:34PM  Benzinga]
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▶ [$$] Shaking Up the Prestige Beauty Business   [Jun-01-18 02:01PM  Barrons.com]
▶ Tariff losers: Whiskey, Motorcycles and Makeup   [01:02PM  Yahoo Finance Video]
▶ Cramer advises buying Estee Lauder into weakness   [May-07-18 07:10PM  CNBC Videos]

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