Estee Lauder Companies Inc
OverviewEdit
Estée Lauder is a renowned multinational beauty and cosmetics company founded by Estée Lauder and her husband Joseph Lauder in 1946. The company is renowned for its wide array of high-quality skincare, makeup, and fragrance products. With a strong emphasis on innovation and luxury, Estée Lauder has established itself as a global leader in the beauty industry, offering a range of prestigious brands such as Clinique, MAC, Bobbi Brown, and La Mer. Through its commitment to enhancing individual beauty and promoting self-confidence, Estée Lauder continues to shape beauty trends and redefine standards in the cosmetic world.
Mission StatementEdit
“Our mission will always be to bring the best to everyone we touch and to support the environment in which we live. As the namesake brand of The Estée Lauder Companies, here is what we are doing today and tomorrow for a more sustainable future”
BrandsEdit
Aerin BeautyEdit
Elegantly modern luxury beauty products created by Aerin Lauder, Estée Lauder's granddaughter
AramisEdit
Classic brand specialising in sophisticated men's fragrances and grooming essentials
Bumble and bumbleEdit
Creative haircare brand encouraging individuality and experimentation in hairstyling
CliniqueEdit
Dermatologist-founded skincare brand offering effective solutions for various skin types and concerns.
DarphinEdit
Skincare products crafted with botanical ingredients to promote balance and harmony in the skin.
Dr. Jart+Edit
Innovative skincare brand merging dermatological science with artistic expression for effective products.
Editions de Parfums Frédéric MalleEdit
Curated collection of artistic fragrances from renowned perfumers
GlamGlowEdit
Specialising in instant-result skincare treatments, offering noticeable skin improvements
Jo Malone LondonEdit
Unique fragrances and elegant scents, personalised and designed for homes as well
KilianEdit
Luxury fragrance brand known for bold and sensual scents presented in exquisite packaging
Lab SeriesEdit
Men's grooming and skincare products addressing specific needs
La MerEdit
Luxurious skincare brand celebrated for transformative products, including Crème de la Mer
Le LaboEdit
Artisanal fragrances known for their captivating scents and minimalist aesthetic
MAC CosmeticsEdit
Professional makeup brand with diverse shades and innovative products
OriginsEdit
Skincare brand rooted in natural ingredients, focusing on restoring skin vitality
PrescriptivesEdit
Customizable makeup and skincare solutions tailored to individual preferences
SmashboxEdit
Makeup inspired by photography techniques for both on-camera and off-camera looks.
The OrdinaryEdit
Affordable and science-based skincare formulas targeting various skin concerns
Tom Ford BeautyEdit
Luxurious makeup and fragrance brand created by designer Tom Ford
Too FacedEdit
Playful and innovative makeup products promoting self-expression
OperationsEdit
The cosmetic and beauty market is a diverse industry encompassing skincare, makeup, fragrances, and more, driven by trends and personal preferences. Estée Lauder is a key player with a portfolio of brands catering to different niches, from clinical skincare to luxury fragrances and creative makeup. They innovate with advanced research, while sustainability efforts align with conscious consumer values. Through global influence, Estée Lauder sets trends and maintains a legacy of quality and innovation in this dynamic market.
Corporate StructureEdit
Equity StakeEdit
Executive LeadershipEdit
Corporate StrategyEdit
FinancialsEdit
DCFEdit
Income StatementEdit
| (Billions) | Historic | Projected | ||||||||
| Income statement | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| Revenue | 13.683 | 14.835 | 14.259 | 16.251 | 17.738 | 18.96 | 20.28 | 21.68 | 23.18 | 24.78 |
| % Growth | 8.42% | -3.88% | 13.97% | 9.15% | 6.91% | 6.91% | 6.91% | 6.91% | 6.91% | |
| Cost of Goods Sold | 2.291 | 2.83 | 2.931 | 3.167 | 3.588 | |||||
| Gross Profit | 11.392 | 12.005 | 11.328 | 13.084 | 14.150 | 12.39 | 12.39 | 12.39 | 12.39 | 12.39 |
| Selling and General Expenses | 8.428 | 8.933 | 8.720 | 9.300 | 9.851 | |||||
| Administration expense | ||||||||||
| R&D | 0.181 | 0.202 | 0.228 | 0.243 | 0.307 | |||||
| Other Expenses | ||||||||||
| D&A | 0.531 | 0.557 | 0.611 | 0.651 | 0.715 | 0.757 | 0.809 | 0.865 | 0.925 | 0.989 |
| EBITDA | 2.252 | 2.313 | 1.769 | 2.890 | 3.277 | 2.50 | 2.50 | 2.50 | 2.50 | 2.50 |
| EBIT | 1.721 | 2.515 | 1.997 | 3.133 | 3.584 | 3.149 | 3.367 | 3.599 | 3.848 | 4.114 |
| % Sales | 12.58% | 16.95% | 14.01% | 19.28% | 20.21% | 16.60% | 16.60% | 16.60% | 16.60% | 16.60% |
| Taxes | 0.042 | 0.080 | 0.175 | 0.103 | 0.169 | 0.380 | 0.406 | 0.434 | 0.465 | 0.497 |
| % EBIT | 2.44% | 3.18% | 8.76% | 3.29% | 4.72% | 12.07% | 12.07% | 12.07% | 12.07% | 12.07% |
Cash Flow ItemsEdit
| Cash Flow Items | ||||||||||
| D&A | 0.531 | 0.557 | 0.611 | 0.651 | 0.715 | 0.757 | 0.809 | 0.865 | 0.925 | 0.989 |
| % sales | 3.88% | 3.75% | 4.29% | 4.01% | 4.03% | 3.99% | 3.99% | 3.99% | 3.99% | 3.99% |
| % Capex | #DIV/0! | 44.60% | -98.07% | -102.20% | -68.75% | #DIV/0! | 81.46% | 81.46% | 81.46% | 81.46% |
| Capex | (0.744) | (0.623) | (0.637) | (1.040) | -0.909 | -0.972 | -1.039 | -1.111 | -1.187 | |
| % sales | 0.00% | -5.02% | -4.37% | -3.92% | -5.86% | -4.79% | -4.79% | -4.79% | -4.79% | -4.79% |
| Change in NWC | (0.002) | (0.011) | 0.544 | (0.554) | -0.372 | -0.383 | -0.395 | -0.408 | -0.421 | |
| % sales | 0.00% | -0.01% | -0.08% | 3.35% | -3.12% | 0.03% | 0.03% | 0.03% | 0.03% | 0.03% |
| % change in sales | -0.17% | 1.91% | 27.31% | -37.26% | -2.05% | -2.05% | -2.05% | -2.05% | -2.05% |
WACCEdit
| WACC | Reasons | |
| Risk free rate | 4.4% | 5 years US treasury bond rate |
| Market risk premium | 5.05% | https://finbox.com/NYSE:EL/models/wacc/ |
| Levered beta | 1.05 | https://www.cnbc.com/quotes/EL |
| Cost of equity | 9.70% | |
| Cost of debt | 4.55% | https://valueinvesting.io/EL/valuation/wacc |
| Share price | 151.10 | |
| Share outstanding (billions) | 0.232 | |
| Value of equity (billions) | 35.055 | |
| Value of debt | 10.169 | long-term debt (8.815B) + short-term debt (1.354B) on balance sheet |
| Internal WACC | 8.54% | |
Discounted Cash Flow StatementEdit
DCF completed on the 233rd day of 2023.
| DCF | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| Revenue | 13.683 | 14.835 | 14.259 | 16.251 | 17.738 | 18.96 | 20.28 | 21.68 | 23.18 | 24.78 |
| % Growth | 8.42% | -3.88% | 13.97% | 9.15% | 6.91% | 6.91% | 6.91% | 6.91% | 6.91% | |
| EBIT | 1.721 | 2.515 | 1.997 | 3.133 | 3.584 | 3.149 | 3.367 | 3.599 | 3.848 | 4.114 |
| % Margins | 12.58% | 16.95% | 14.01% | 19.28% | 20.21% | 16.60% | 16.60% | 16.60% | 16.60% | 16.60% |
| Taxes | 0.042 | 0.080 | 0.175 | 0.103 | 0.169 | 0.380 | 0.406 | 0.434 | 0.465 | 0.497 |
| % EBIT | 2.44% | 3.18% | 8.76% | 3.29% | 4.72% | 12.07% | 12.07% | 12.07% | 12.07% | 12.07% |
| EBIAT | 1.763 | 2.595 | 2.172 | 3.236 | 3.753 | 2.704 | 0.674 | 0.674 | 0.674 | 0.674 |
| D&A | 0.531 | 0.557 | 0.611 | 0.651 | 0.715 | 0.757 | 0.809 | 0.865 | 0.925 | 0.989 |
| % sales | 3.88% | 3.75% | 4.29% | 4.01% | 4.03% | 3.99% | 3.99% | 3.99% | 3.99% | 3.99% |
| Capex | (0.744) | (0.623) | (0.637) | (1.040) | -0.909 | -0.972 | -1.039 | -1.111 | -1.187 | |
| % sales | 0.00% | -5.02% | -4.37% | -3.92% | -5.86% | -4.79% | -4.79% | -4.79% | -4.79% | -4.79% |
| Change in NWC | (0.002) | (0.011) | 0.544 | (0.554) | -0.372 | -0.383 | -0.395 | -0.408 | -0.421 | |
| % sales | 0.00% | -0.01% | -0.08% | 3.35% | -3.12% | 0.03% | 0.03% | 0.03% | 0.03% | 0.03% |
| Unlevered FCF | 2.294 | 3.898 | 3.417 | 3.980 | 6.062 | 4.741 | 2.839 | 2.974 | 3.118 | 3.271 |
| Year Count | 0.64 | 1.64 | 2.64 | 3.64 | 4.64 | |||||
| Present FCF | 4.500 | 2.839 | 2.974 | 3.118 | 3.271 |
| Sum FCF | 16.701 |
| Terminal growth rate | 4.3% |
| Terminal value | 80.399 |
| Enterprise value | 97.101 |
| Net debt | 10.169 |
| Equity value | 86.932 |
| Shares (billions) | 0.232 |
| Implied share price | 374.71 |
| Current share price | 151.10 |