WallStSmart
EL

Estee Lauder Companies Inc

NYSE: EL · CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS

$82.75
+0.71% today

Updated 2026-06-05

Market cap
$32.45B
P/E ratio
P/S ratio
2.19x
EPS (TTM)
$-0.70
Dividend yield
1.59%
52W range
$66 – $121
Volume
4.1M

Estee Lauder Companies Inc (EL) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for EL.

WallStSmart Verdict
Overvalued

Current price exceeds what fundamentals support. Risk/reward skewed unfavorably.

Smart Value Score: 38 / 100
P/E (TTM)
Not meaningful for this profile
PEG
1.43
Fair range
Margin of Safety
+29.47%
Fair value $149.43 vs $82.75
EV / EBITDA
29.3x

EL historical valuation range

Where current P/E sits in EL's own 5Y range.

NOW
29.8x
5Y Low
39.5x
25th
65.5x
Median
93.0x
75th
178.0x
5Y High
EL is trading cheaper than 100% of the last 5Y.
0th percentile · Historically cheap

EL intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$82.75
Market value
Intrinsic value
$149.43
DCF estimate
Margin of safety
+29.47%
+80.6% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

EL valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

!
PEG in fair range
PEG of 1.43 suggests price reflects growth fairly. Neither a bargain nor overpriced.
Strong margin of safety
Current price 29.5% below DCF intrinsic value estimate. Meaningful downside cushion.
Weak financial quality
Piotroski F-Score of 3/9 suggests deteriorating fundamentals. Valuation requires closer scrutiny.

P/E Ratio — History

P/S Ratio — History

Current: 2.19x

Is EL overvalued in 2026?

Estee Lauder Companies Inc (EL) currently trades at $82.75 per share with a market capitalization of $32,445,768,000.00. Based on our multi-factor framework, the stock appears richly valued with a Smart Value Score of 38/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

EL currently has no meaningful P/E ratio, which typically signals that the company is unprofitable, near breakeven, or emerging from a loss-making period. With a P/S ratio of 2.2x, the market is valuing the company primarily on its revenue rather than its earnings.

Looking at its own history, EL is currently trading cheaper than 100% of the last 5Y on P/E. This places it in the 0th percentile of its historical range, a level that has historically coincided with attractive entry points.

Our discounted cash flow model estimates EL's intrinsic value at $149.43 per share, against the current market price of $82.75. This implies a margin of safety of +29.47%. A meaningful cushion exists against model error, making this a reasonable risk-adjusted entry.

Financial quality is a concern. The Piotroski F-Score of 3/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.

Bottom line: EL appears richly valued on our framework, with a Smart Value Score of 38/100. At current levels the risk/reward is skewed against the buyer. A materially lower price or significant operational improvement would be needed to change the picture.

Frequently asked questions

Is EL overvalued?

EL scores 38/100 on our Smart Value Score (Grade D), a weak overall profile. The DCF also shows a positive margin of safety, so price and fundamentals line up reasonably well.

What is EL's fair value?

Our DCF model estimates EL's intrinsic value at $149.43 per share, versus the current price of $82.75, a margin of safety of +29.47%. Fair value is the present value of the cash flows we project the business to produce, so a price below it means the market is pricing the stock below that conservative estimate.

What P/E ratio does EL trade at?

EL does not have a meaningful P/E right now, usually a sign of unprofitability or an earnings transition. For unprofitable growth names, price-to-sales is the more useful gauge.

Is EL a buy based on valuation?

Our Smart Value rating for EL is Sell, from a Smart Value Score of 38/100 that blends growth, quality, and valuation. The profile skews cautious, and a better price or clearer operating improvement would strengthen the case. This is research to inform your decision, not personalized financial advice.

How does EL's valuation compare to its history?

On P/E, EL sits in the 0th percentile of its own 5Y range, historically cheap relative to where it has traded. A low percentile means today's multiple is near the bottom of its historical band.

What is EL's Smart Value Score?

EL's Smart Value Score is 38/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.