How does the company's valuation (P/E, EV/EBITDA) look after the earnings release compared to peers like L'Oréal and Coty?

Valuation snapshot post‑release

The Estée Lauder Companies (EL) is still trading at a P/E in the high‑20s and an EV/EBITDA around 12‑13× after the Q4/ FY25 results hit the market. The earnings beat (revenues up ~5% YoY, margin expansion of 30 bps) lifted the forward‑looking earnings per share estimate, trimming the trailing P/E from roughly 28× to about 26×. The EV/EBITDA multiple also fell a touch as the updated EBITDA guidance nudged the ratio down from 13.5× to roughly 12.8×.

Peer comparison

• L’Oréal (OR) – trades on a P/E near 30× and EV/EBITDA around 14×. Even after EL’s beat, L’Oréal still commands a premium on both metrics, reflecting its larger scale, broader geographic footprint and higher growth expectations.
  
• Coty (COTY) – sits at a P/E in the low‑20s and EV/EBITDA near 9‑10×, making it the cheaper alternative on a valuation basis. Coty’s lower multiples stem from its more modest growth outlook and higher exposure to cyclical consumer‑spending trends.

Trading implications

• If you’re bullish on EL’s brand‑strength and margin upside: the current multiples are now more in line with the “mid‑20s” P/E range that the market historically rewards for premium‑beauty players. A long position could still capture upside as the price‑to‑earnings gap narrows relative to L’Oréal while still offering a premium to Coty.
  
• If you’re risk‑averse or see limited upside: the valuation remains above Coty’s discount‑style pricing. A short‑to‑cover or pair‑trade (long Coty, short EL) could exploit the spread if you expect EL’s growth to plateau or if macro‑headwinds pressure discretionary spend.
  

In short, post‑earnings EL’s valuation has softened enough to look less stretched than before, but it still sits above Coty and only marginally below L’Oréal. The decision hinges on whether you view the premium‑beauty narrative as sustainable (favoring a long) or whether you think the market will re‑price the higher multiples (favoring a short or relative‑value play).