Is The Estée Lauder Companies Inc. (EL) Undervalued?
Based on the current stock price of $107.65 and a P/E ratio of 36.75,The Estée Lauder Companies Inc. has a PEG ratio of 0.86.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 0.86, EL appears to be potentially undervalued relative to its growth rate of 42.91%.
Based on a PEG ratio of 0.83 (adjusted for dividends).
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How we analyzed EL
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 36.75and dividing it by the annual growth rate of 42.91%.
PEG = 36.75 (P/E) ÷ 42.91 (Growth) = 0.86
Frequently Asked Questions about EL
What is the current PEG Ratio for The Estée Lauder Companies Inc. (EL)?+
The current PEG Ratio for The Estée Lauder Companies Inc. is 0.86. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is EL stock undervalued right now?+
Based on the PEG ratio of 0.86, The Estée Lauder Companies Inc. appears to be potentially undervalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for EL?+
The PEGY ratio for The Estée Lauder Companies Inc. is 0.83. This metric accounts for dividend yield (1.30%), providing a more complete valuation picture.