Estee Lauder Cos. Inc (EL) is overvalued and Procter & Gamble Co (PG) is overvalued.
Both trade above our estimate of their intrinsic value. PG is the closer of the two: -42%, against -404% for EL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $19.92; the price of $100.29 is 404% above that value, and 72% of that value comes from beyond year five.
Leak Score 35/100 on 8 of 12 signals
Discounting its cash flows at 7.6% (average of 3 methods) values the shares at $104.12; the price of $148.22 is 42% above that value, and 81% of that value comes from beyond year five.
Leak Score 60/100 on 10 of 12 signals
| Metric | EL | PG |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $100.29 | $148.22 |
| Intrinsic value | $19.92 | $104.12 |
| Margin of safety | -404% | -42% |
| Leak Score | 35/100 (8/12) | 60/100 (10/12) |
| Market cap | $36.3B | $344.3B |
| Revenue growth, 5 years | -1.5% | 2.7% |
| Operating margin | 11.2% | 23.9% |
| Net margin | 1.2% | 18.1% |
| Return on equity | 4.8% | 30.3% |
| Debt to equity | 2.43 | 0.65 |
| P/E | 201.6x | 22.4x |
| Forward P/E | 25.5x | 20.1x |
| P/B | 9.5x | 6.5x |
| Dividend yield | 1.5% | 3.0% |