Let's talk about the popular The Estée Lauder Companies Inc. (NYSE:EL). The company's shares saw a decent share price growth of 16% on the NYSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Estée Lauder Companies’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Estée Lauder Companies

Is Estée Lauder Companies Still Cheap?

According to our valuation model, Estée Lauder Companies seems to be fairly priced at around 4.12% above our intrinsic value, which means if you buy Estée Lauder Companies today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $71.82, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Estée Lauder Companies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Estée Lauder Companies?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Estée Lauder Companies, it is expected to deliver a relatively unexciting top-line growth of 7.7% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? EL’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on EL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Estée Lauder Companies as a business, it's important to be aware of any risks it's facing. For example - Estée Lauder Companies has 2 warning signs we think you should be aware of.

If you are no longer interested in Estée Lauder Companies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.