Estee Lauder - Comparative Multiple Analysis

Estee Lauder (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Estee Lauder

WikiWealth compares Estee Lauder's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Estee Lauder's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Estee Lauder.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Estee Lauder's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Estee Lauder's Analysis


How does this work? The Comparative Investment Analysis determines the value of Estee Lauder by comparing Estee Lauder financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Estee Lauder.

See the Estee Lauder cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Estee Lauder.

Also, see the Estee Lauder's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Estee Lauder's valuation conclusion for a quick summary.