Estee Lauder Companies, Inc. (The) (EL) Company Bio
Estee Lauder is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company was founded in 1946 and is based in New York, New York.
EL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Estee Lauder Companies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Estee Lauder Companies Inc ranked in the 17th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for EL, they are:
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 22.64% of the free cash flow producing stocks we're observing.
EL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.09% of tickers in our DCF set.
As a business, Estee Lauder Companies Inc experienced a tax rate of about 23% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 83.81% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as EL, try SYY, SAM, BF.B, PEP, and ALCO.
Estée Lauder (EL) finally recovered to pre-pandemic valuations and set a new 52-week high to end August, but as the market gains more turbulence, the 'lipstick index' doesn't look all too optimistic through the end of October. While Estée Lauder should find strength through November and the holiday season in...
Damien Robbins on Seeking Alpha | September 7, 2020
Estee Lauder Companies Inc (NYSE: EL ) reported fourth-quarter and full-year fiscal 2020 results Thursday that disappointed investors — prompted two analysts to turn bullish on the beauty stock. The Estee Lauder Analysts: D.A. Davidson analyst Linda Bolton Weiser upgraded Estee Lauder from Neutral to Buy with a price target lifted $183 to $231. Morgan Stanley analyst Dara Mohsenian upgraded Estee Lauder from Equal-weight to Overweight with a price target lifted from $196 to $233. DA Davidson Says The Worst Is Over: Estee Lauder reported "worse-than-feared" fourth-quarter results, Bolton Weiser said in a note. The cosmetics company posted a constant currency fourth-quarter loss of 50 cents per share against a Street estimate for a 19-cent-per-share loss, and sales of $2.43 billion missed...
The Estée Lauder Companies Inc. (EL) Q4 2020 Earnings Conference Call August 20, 2020 09:30 AM ET Company Participants Rainey Mancini - Senior Vice President of Investor Relations Fabrizio Freda - President and Chief Executive Officer Tracey Travis - Executive Vice President and Chief Financial Officer Conference Call Participants Erinn...
US stocks rose on Thursday as a tech rally offset a surprise jump in weekly jobless claims. New unemployment filings climbed back above 1 million after two straight periods of decline. Investors also weighed the stalled talks between Democrats and Republicans on the next coronavirus stimulus package. Shares of mega-cap technology companies such as Apple , Tesla , Facebook , and Microsoft rose, leading the broader market higher. Read more on Business Insider . US stocks rose on Thursday as a rally in technology stocks offset disappointing labor-market data. The gains were driven by some of the market's biggest companies. Apple rose a day after it beoming the first US-listed company to reach a $2 trillion market capitalization . Tesla also spiked, surpassing $2,000 per share for the first...