EL Analysis — TradeApes

ESTEE LAUDER COMPANIES INC (EL)

Healthcare

$70.82 close · Apr 09, 2026

↑ Overvalued (10/100)

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 50

Operating Trend 50

Valuation 20

Capital Allocation 55

Risk 80

Positives

↑ Low stock compensation — SBC below 3% of revenue +0.8

Concerns

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

↓ Low FCF yield — below 1%, price implies exceptional future growth -2.5

Signal contribution: +0.8 from strengths -7.5 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	11.26B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	8.45B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	876.0M
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	368.0M
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	-436.0M
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	1.27B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	—
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	—

Valuation

Market Cap	25.84B
Enterprise Value	—
EV / Revenue	—
EV / EBITDA	—
P/E (TTM)	70.2x
Forward P/E	—
PEG	—
P/FCF	-59.3x
FCF Yield	-1.7%

Relative Valuation

Negative FCF (-436.0M TTM) — using relative multiples instead of DCF

Book Value / Share

$11.05

Price / Book

6.4x

P/E (TTM)

70.2x

Price / Sales

2.3x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	75.0%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	11.3%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	3.3%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	-3.9%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	-25.8%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	152.8%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	3 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

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Quarterly Financials

Metric	Q2 '26	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '24	Q3 '24	Q2 '24	Q1 '24	Q4 '24	Q3 '24
Revenue ?Total quarterly sales from primary business operations.	4.23B	3.48B	—	3.55B	4.00B	3.36B	3.87B	3.94B	4.28B	3.52B	3.61B	3.75B
Gross Profit ?Quarterly revenue minus cost of goods sold.	3.24B	2.55B	—	2.66B	3.05B	2.43B	2.78B	2.83B	3.13B	2.45B	2.45B	2.59B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	401.0M	169.0M	—	306.0M	-580.0M	-121.0M	-233.0M	531.0M	574.0M	98.0M	-5.0M	297.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	162.0M	47.0M	—	159.0M	-590.0M	-156.0M	-286.0M	335.0M	324.0M	36.0M	-32.0M	155.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	—	-436.0M	—	—	—	-811.0M	2.14B	—	—	-703.0M	1.53B	—

Revenue & Free Cash Flow

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.