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 26th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Estee Lauder Companies Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 13.78; that's higher than 82.28% of US stocks in the Consumer Defensive sector that have positive free cash flow.
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than only 22.9% 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 40.28% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Estee Lauder Companies Inc? See MKC, EDU, KMB, UNFI, and WMT.
Piper Sandler analyst Erinn Murphy upgraded both Estee Lauder and Ulta stock to Overweight from Neutral. Skin-care habits developed now will benefit Estee Lauder in the long run, while Ulta could see a meaningful sales boost from more online customers.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
NEW YORK--(BUSINESS WIRE)--The Estée Lauder Companies Inc. (NYSE: EL) will participate in Bernstein’s 36th Annual Strategic Decisions Virtual Conference on Wednesday, May 27th, 2020. Fabrizio Freda, President and CEO, will discuss the Company’s business and strategies in a session scheduled at 9:00 a.m. EDT. Interested parties can access the live webcast of the event on Wednesday, May 27th from 9:00 a.m. – 9:50 a.m. EDT at http://www.elcompanies.com/investors. The webcast will be archived on th