Latest Ratios: P/E Ratio -26.8x · EV/EBITDA 20.7x · ROE -24.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $30.5B | $29.1B | $38.4B | $70.9B | $92.9B | $117.1B | $69.2B | $67.8B | $53.6B | $35.8B | $34.3B |
| Enterprise Value | $37.0B | $35.6B | $44.8B | $77.0B | $96.6B | $120.3B | $73.0B | $68.2B | $55.0B | $38.2B | $35.6B |
| P/E Ratio → | -26.81 | — | 98.52 | 70.39 | 38.88 | 40.83 | 101.44 | 37.99 | 48.37 | 28.65 | 30.75 |
| P/S Ratio | 2.13 | 2.04 | 2.46 | 4.45 | 5.24 | 7.22 | 4.84 | 4.56 | 3.92 | 3.03 | 3.04 |
| P/B Ratio | 7.87 | 7.53 | 7.22 | 11.04 | 14.45 | 16.86 | 17.47 | 15.38 | 11.38 | 8.13 | 9.56 |
| P/FCF | 45.50 | 43.43 | 26.64 | — | 46.46 | 39.12 | 41.78 | 38.25 | 27.58 | 27.62 | 27.13 |
| P/OCF | 23.97 | 22.87 | 16.27 | 40.94 | 30.57 | 32.25 | 30.36 | 26.95 | 20.84 | 19.89 | 19.16 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.49 | 2.87 | 4.84 | 5.45 | 7.42 | 5.11 | 4.59 | 4.02 | 3.23 | 3.16 |
| EV / EBITDA | 20.71 | 19.93 | 24.97 | 34.18 | 24.79 | 36.79 | 59.98 | 23.78 | 21.26 | 17.64 | 17.58 |
| EV / EBIT | 38.63 | — | 38.97 | 46.62 | 30.16 | 34.32 | 60.48 | 27.97 | 26.08 | 22.23 | 21.90 |
| EV / FCF | — | 53.16 | 31.10 | — | 48.31 | 40.17 | 44.05 | 38.49 | 28.28 | 29.50 | 28.18 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.9% | 73.9% | 71.7% | 71.3% | 75.7% | 76.4% | 75.2% | 77.2% | 79.2% | 79.4% | 80.6% |
| Operating Margin | 6.7% | 6.7% | 6.2% | 9.5% | 17.9% | 16.1% | 4.2% | 15.6% | 15.0% | 14.4% | 14.3% |
| Net Profit Margin | -7.9% | -7.9% | 2.5% | 6.3% | 13.5% | 17.7% | 4.8% | 12.0% | 8.1% | 10.6% | 9.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -24.7% | -24.7% | 6.6% | 15.7% | 35.7% | 52.6% | 16.3% | 39.1% | 24.3% | 31.3% | 30.8% |
| ROA | -5.5% | -5.5% | 1.7% | 4.5% | 11.1% | 14.4% | 4.4% | 13.9% | 9.2% | 12.0% | 12.8% |
| ROIC | 6.5% | 6.5% | 6.0% | 10.0% | 23.5% | 22.0% | 7.2% | 31.8% | 23.9% | 21.7% | 26.3% |
| ROCE | 6.3% | 6.3% | 5.9% | 9.4% | 20.0% | 17.9% | 5.7% | 26.0% | 22.8% | 22.3% | 25.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.44 | 2.44 | 1.85 | 1.58 | 1.19 | 1.17 | 2.22 | 0.77 | 0.75 | 0.81 | 0.63 |
| Debt / EBITDA | 5.28 | 5.28 | 5.47 | 4.51 | 1.96 | 2.48 | 7.22 | 1.19 | 1.37 | 1.65 | 1.11 |
| Net Debt / Equity | — | 1.69 | 1.21 | 0.96 | 0.57 | 0.45 | 0.95 | 0.10 | 0.29 | 0.55 | 0.37 |
| Net Debt / EBITDA | 3.65 | 3.65 | 3.58 | 2.73 | 0.95 | 0.96 | 3.10 | 0.15 | 0.53 | 1.12 | 0.66 |
| Debt / FCF | — | 9.73 | 4.46 | — | 1.84 | 1.05 | 2.27 | 0.24 | 0.70 | 1.88 | 1.05 |
| Interest Coverage | -1.57 | -1.57 | 3.04 | 6.48 | 19.18 | 20.25 | 7.50 | 18.35 | 16.47 | 16.70 | 23.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.30 | 1.30 | 1.39 | 1.46 | 1.60 | 1.84 | 1.72 | 1.57 | 1.86 | 1.76 | 1.58 |
| Quick Ratio | 0.92 | 0.92 | 1.01 | 0.99 | 1.10 | 1.37 | 1.32 | 1.13 | 1.37 | 1.23 | 1.10 |
| Cash Ratio | 0.54 | 0.54 | 0.60 | 0.65 | 0.68 | 0.94 | 0.97 | 0.65 | 0.82 | 0.62 | 0.52 |
| Asset Turnover | — | 0.72 | 0.72 | 0.68 | 0.85 | 0.74 | 0.80 | 1.13 | 1.09 | 1.02 | 1.22 |
| Inventory Turnover | 1.80 | 1.80 | 2.03 | 1.53 | 1.47 | 1.53 | 1.72 | 1.69 | 1.76 | 1.65 | 1.73 |
| Days Sales Outstanding | — | 39.09 | 40.39 | 33.31 | 33.52 | 38.31 | 30.49 | 44.97 | 39.67 | 43.06 | 40.78 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 2.1% | 2.5% | 1.3% | 0.9% | 0.6% | 0.7% | 0.9% | 1.0% | 1.4% | 1.2% |
| Payout Ratio | — | — | 242.8% | 91.9% | 35.1% | 26.2% | 73.5% | 34.1% | 49.3% | 38.9% | 37.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1.0% | 1.4% | 2.6% | 2.4% | 1.0% | 2.6% | 2.1% | 3.5% | 3.3% |
| FCF Yield | 2.2% | 2.3% | 3.8% | — | 2.2% | 2.6% | 2.4% | 2.6% | 3.6% | 3.6% | 3.7% |
| Buyback Yield | 0.1% | 0.1% | 0.1% | 0.4% | 2.5% | 0.6% | 1.3% | 2.3% | 1.4% | 1.2% | 2.6% |
| Total Shareholder Yield | 2.1% | 2.2% | 2.6% | 1.7% | 3.4% | 1.3% | 2.0% | 3.2% | 2.4% | 2.5% | 3.8% |
| Shares Outstanding | — | $360M | $361M | $361M | $365M | $368M | $367M | $370M | $376M | $373M | $377M |
China Travel Retail Volatility
According to current market data, EL trades at a forward P/E of 33.14, which appears to price in a significant recovery that contrasts with the company's recent negative TTM earnings and the ongoing volatility in its core prestige beauty segments across global travel retail markets.
The elevated forward multiple suggests investors are betting on a rapid margin restoration, yet this valuation may be disconnected from the reality of a structurally higher cost-to-serve environment. Compared to peers like Inter Parfums, which trades at a more modest multiple with superior return metrics, EL's current pricing warrants caution regarding the sustainability of its growth assumptions.
Based on reported figures, EL's ROIC has deteriorated to 1.7% in 2026Q3, a sharp decline from historical levels that highlights the company's struggle to generate adequate returns on its invested capital during this period of significant operational restructuring and inventory management challenges.
The collapse in ROIC suggests that the firm's capital allocation, particularly regarding recent brand acquisitions, is currently failing to create value above the cost of capital. This trend indicates that the company's prestige brand architecture is not currently translating into the efficient capital compounding seen in more agile, pure-play beauty competitors.
As reported in financial statements, EL's days inventory outstanding reached 196 days in 2026Q3, reflecting a persistent inability to clear excess stock, which significantly inflates the cash conversion cycle and ties up critical liquidity that could otherwise be deployed for strategic brand investment or debt reduction.
The extended inventory cycle suggests a disconnect between supply chain planning and actual sell-through in the travel retail channel. Investors should monitor whether this inefficiency is a temporary byproduct of the current destocking phase or a permanent shift in the company's ability to manage its SKU velocity effectively.
According to recent SEC filings, EL's debt-to-EBITDA ratio has spiked to 37.35 in 2026Q3, a level that indicates significantly reduced financial flexibility and suggests that the company's ability to service its obligations is increasingly sensitive to even minor fluctuations in operating cash flow.
While the absolute debt levels may appear manageable in isolation, the extreme volatility in interest coverage ratios suggests that the company's balance sheet is currently ill-equipped to handle prolonged operational distress. This leverage profile limits management's capacity to pivot strategy without risking further credit quality degradation.
The P/E ratio is frequently misapplied to EL, as it obscures the impact of non-recurring restructuring charges and significant impairment costs that currently distort the company's true earning power during its ongoing transition toward a more sustainable, albeit lower-margin, operational model.
Analysts should instead prioritize EV/EBITDA or free cash flow yields to better capture the underlying cash generation potential of the business, as these metrics are less sensitive to the accounting noise currently present in the net income line. Relying on P/E in this context may lead to an inaccurate assessment of the company's valuation floor.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying EL stock.
The Estée Lauder Companies Inc.'s current P/E ratio is -26.8x. The historical average is 38.8x.
The Estée Lauder Companies Inc.'s current EV/EBITDA is 20.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.4x.
The Estée Lauder Companies Inc.'s return on equity (ROE) is -24.7%. The historical average is 24.1%.
Based on historical data, The Estée Lauder Companies Inc. is trading at a P/E of -26.8x. Compare with industry peers and growth rates for a complete picture.
The Estée Lauder Companies Inc.'s current dividend yield is 2.03%.
The Estée Lauder Companies Inc. has 73.9% gross margin and 6.7% operating margin.
The Estée Lauder Companies Inc.'s Debt/EBITDA ratio is 5.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.